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ezto.mheducation.com + Target... *Dash. Proct... M Question.. G S Result... YouTu... S Solid... @ Searc LEGO Searc a Amaz.. hiba. (... the wi... Final Exam- Fall 2024 i Saved Help Save & Exit Submit 6 In ABC Printing, Queen's black is a popular input with an annual demand of 50,000 gallons, ordering cost of $50 per order, and holding cost of $5 per unit per year; the economic order quantity is 1,000. Hence during the year, they used 1,000 as the order quantity. An audit of the costs revealed that the true ordering cost was only $25 and the true holding cost was $10 per gallon per year. The correct order quantity would have been 500. How much did ABC lose due to incorrect cost information during the year? 01:33:54 EOQ EOQ Discount Q* = 2DS 2(Annual Demand) (Order or Setup Cost) H Q* = 2DS 2(Annual Demand) (Order or Setup Cost) Annual Holding Cost H Annual Holding Cost 0* TC* = H + D Q* D TC* = 2 2 H + * S + RD The period between two orders=Number of days in a year /(D/Q.) Total number of orders per year =D/Q. EPQ ROP = d x LT+ Safety Stock TC = HQ 2 Duration - of - Order - Cycle = 2; Run length = 2;1my = 2 (p-d) P P 2 DS 20 = P H p - d Mc Graw Hill