< Pam runs a mail-order business for gym equipment. Annual demand for TricoFlexers is 17,500. The...

Transcribed Image Text:

< Pam runs a mail-order business for gym equipment. Annual demand for TricoFlexers is 17,500. The annual holding cost per unit is $2.75, and the cost to place an order is $37. a. What is the economic order quantity? The EOQ is 686. (Enter your response rounded to the nearest whole number.) b. Suppose demand for TricoFlexers doubles, to 35,000. The EOQ for the new value of demand is 970 (Enter your response rounded to the nearest whole number.) Does the EOQ also double? A. No, the EOQ does not double as the annual demand doubles. The EOQ increases by the square-root of the product of two-times the demand times ordering cost, divided by holding cost. OB. No, the EOQ does not double as the annual demand doubles. The EOQ is inversely proportional to the square-root of the demand. OC. Yes, the EOQ doubles because the EOQ is directly proportional to the demand. OD. No, the EOQ does not double as the annual demand doubles. The EOQ is inversely proportional to the demand. c. The manufacturer of TricoFlexers has agreed to offer Pam a price discount of $3 per unit ($34 rather than $37) if she buys 1,600. Assuming that annual demand is stil 17,500, how many units should Pam order at a time? Pam should orderunits at a time. (Enter your response rounded to the nearest whole number) < Pam runs a mail-order business for gym equipment. Annual demand for TricoFlexers is 17,500. The annual holding cost per unit is $2.75, and the cost to place an order is $37. a. What is the economic order quantity? The EOQ is 686. (Enter your response rounded to the nearest whole number.) b. Suppose demand for TricoFlexers doubles, to 35,000. The EOQ for the new value of demand is 970 (Enter your response rounded to the nearest whole number.) Does the EOQ also double? A. No, the EOQ does not double as the annual demand doubles. The EOQ increases by the square-root of the product of two-times the demand times ordering cost, divided by holding cost. OB. No, the EOQ does not double as the annual demand doubles. The EOQ is inversely proportional to the square-root of the demand. OC. Yes, the EOQ doubles because the EOQ is directly proportional to the demand. OD. No, the EOQ does not double as the annual demand doubles. The EOQ is inversely proportional to the demand. c. The manufacturer of TricoFlexers has agreed to offer Pam a price discount of $3 per unit ($34 rather than $37) if she buys 1,600. Assuming that annual demand is stil 17,500, how many units should Pam order at a time? Pam should orderunits at a time. (Enter your response rounded to the nearest whole number)