Question: 5 pc (This problem description is for Questions 13-17) Demand for a product satisfying EOQ assumptions is 2000 units / year. Purchase price is $10/unit.

5 pc (This problem description is for Questions 13-17) Demand for a product satisfying EOQ assumptions is 2000 units / year. Purchase price is $10/unit. Ordering cost is $100 and holding cost is $2.0/unit/year. If you buy 1000 or more units in one lot (order), the dealer gives you 2% discount (which is all-unit discount) and the unit purchase price is $9.8 as shown in the below table. Note that the discount does not affect the unit inventory holding cost in this case. The lead time (LT) is zero. Lot size Price: $/unit Order Quantity Range: 999 or fewer 10.00 Order quantity range: 1000 and up 9.80 H ($/unit/year) 2.0 2.0 Q. Lot size Q" Annual costs Purchase $ Ordering $ Holding $ Total $ What is the theoretical optimal order quantity ? 4623 units) What is the theoretical optimal order quantity Qo? 463.3 (units) 447.2 (units) 453.5 (units) 500 (units) 475 (units) What is the practical best/optimal order quantity if you decide to order in the range: 1000 units and up? 950 1000 1350 447 450 1100 If you decide to order in the range: 1000 units and up, what is the minimal Annual Total Cost (Annual purchasing cost + Annual holding cost + Annual ordering cost)? $23000 $22000 $20800 $11000 $21800 $21574

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