Question: 5 . Suppose for problem 2 the actual demand turns out to be 7 2 , 0 0 0 boxes instead of 3 6 ,

5. Suppose for problem 2 the actual demand turns out to be 72,000 boxes instead of 36,000 boxes. If you had used the EOQ from the previous problem, what would the annual order and carrying cost be? What percent larger is this cost than the cost estimated in (a)? What can you conclude about the cost of an incorrect demand estimate?

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