Question: 3. Please consider the following EOQ problem. A product costs $120 to order each time and the holding cost is 15% of the product unit

3. Please consider the following EOQ problem. A

3. Please consider the following EOQ problem. A product costs $120 to order each time and the holding cost is 15% of the product unit cost per week. The product costs $12 per unit. The monthly demand is 2000 units. 1) When an EOQ is used, how many orders will be placed throughout the year? 2) Please identify the total cost (total holding, total ordering, and total product cost) in case an EOQ is used. 3) Later it turns out that the analyst's estimation on the monthly demand is incorrect. The monthly demand should have been 1800 units. Please update the EOQ and the total cost related to the inventory management (i.e., total holding and total ordering). 4) The demand estimation difference was 200 units per month. What is the total inventory management related cost difference between the original (with wrong EOQ ) and the updated (with corrected EOQ)

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