Question: 3. Henry Crouch's law office has traditionally ordered ink refills 60 units at a time (Q=60). The firm estimates that annual carrying cost of inventory

3. Henry Crouch's law office has traditionally

3. Henry Crouch's law office has traditionally ordered ink refills 60 units at a time (Q=60). The firm estimates that annual carrying cost of inventory is 40% of the $10 unit cost and that the annual demand is about 240 units per year. The assumptions of the basic EOQ model are thought to apply. a) For what value of ordering cost would this decision of Q be optimal? b) If the true ordering cost turns out to be much greater than your answer to (a) (i.e., ordering cost =$200), what would be the firm's optimal order? Did the number of orders per year reduced or increase

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