Question: 2) A retailer estimates her fixed cost (S) for placing an order at $1,000. Currently, she orders in optimal quantities of 400 units. She has,

 2) A retailer estimates her fixed cost (S) for placing an

2) A retailer estimates her fixed cost (S) for placing an order at $1,000. Currently, she orders in optimal quantities of 400 units. She has, however, heard of the benefits of just-in-time purchasing - a principle that advocates purchasing goods in smaller lots as a means of keeping inventory down. To do so, she needs to reduce her fixed order costs. Use the EOQ formula to determine what her fixed ordering cost (S) should be if she wishes her optimal order size to be 50

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