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  4.3 Re-order quantity
  ● The re-order quantity is the amount of the item of stock to be ordered each time the re-order level is reached.
  ● The re-order quantity will be the same amount each time an order is placed.
  To minimize stockholding and stock ordering costs, it should be the EOQ.
 
  The steps involved are as follows:
  (1). Calculate EOQ, ignoring discounts
  (2). If the EOQ is smaller than the minimum purchase quantity to obtain a bulk discount, calculate the total for the EOQ of the annual stockholding costs,ordering costs and purchase cost
  (3). Recalculate annual stockholding costs, ordering costs and purchase costs for a purchase order size that is only just large enough to qualify for the bulk discount.
  (4). Compare the total costs of EOQ and the order quantity just large enough to obtain the discount.
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