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English Boot House has and annual demand of 25,000 pairs of shoes. A pair of shoes cost $10, an order preparation cost of $10 and a carrying cost of 20%. It is ordered on the basis of an EOQ, but the supplier has offered a discount of 2% on orders of $10,000 or more. Being a Supply Chain Manager the Managing Director of English Boot House has asked your opinion whether to except the order or not?
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