Question: How would the EBQ change if the set-up costs were reduced by 50 per cent, and the holding costs were re-assessed at 40 per cent,
How would the EBQ change if the set-up costs were reduced by 50 per cent, and the holding costs were re-assessed at 40 per cent, taking account of the opportunity costs of capital at TEP?
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The demand rate and production rate do not change However the cost of holding one unit DOUBLES and the cost of the setups HALVES Applying these change... View full answer
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