Essay
An assistant manager is reviewing the costs associated with the store's best-selling product. The data available follows.
Demand = 500 units/year
Order cost = $40/order
Holding cost = $7/unit/year
a. What is the EOQ and its associated ordering and holding costs?
b. If annual demand doubles and all other costs remain the same, what is the new EOQ and total annual cost?
Correct Answer:
Verified
Correct Answer:
Verified
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