Suppose that instead of ordering the amount Q specified by the EOQ formula, the order quantity 0.8Q
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Suppose that instead of ordering the amount Q specified by the EOQ formula, the order quantity 0.8Q is used. Show that the sum of the annual ordering cost and the annual holding cost increases by 2.5%.
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Using suboptimal order quantity Let Q current EOQ We know HCQSCQ where HC annual holding cost ...View the full answer
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Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
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