a) What is the EOQ? _______ units (round your response to the nearest whole number).

b) What is the total cost if the EOQ is used without the discount?

Ordering Cost = Number of Orders in a Year Cost per Order

Holding Cost = Average Inventory Holding Cost per Unit

Product Cost = Demand Price of the Product

Total Cost = Ordering Cost + Holding Cost + Product Cost = __________ (enter your response rounded to the nearest whole number).

c) What is the total cost if Meena orders 300 units at a time in order to qualify for the discount?

Total Cost = Ordering Cost + Holding Cost + Product Cost = __________ (enter your response rounded to the nearest whole number).

d) Since the total cost with the discount is greater than/ less than (select one) the total cost without the discount, Meena should/ should not (select one) order 300 units at a time in order to qualify for the discount.

Problem 12.23 B Question Help Meena Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Meena is $400. Carrying cost is estimated to be 21% of the unit cost, and the ordering cost is $23 per order. If Purushottama Meena, the owner, orders in quantities of 300 or more, he can get a 9% discount on the cost of the detectors. Should Meena take the quantity discount? What is the EOQ without the discount? EOQ = units (round your response to one decimal place). Enter your answer in the answer box and then click Check Answer. 1 part remaining 1 Clear All Check