Question: Average demand: 7 5 , 0 0 0 cases of crackers per year ( demand and lead time uncertainty will be addressed in part B

Average demand: 75,000 cases of crackers per year
(demand and lead time uncertainty will be addressed in part B):
Cracker cost: $5.50 per case
Each order delivery cost: $250
Carrying cost: 26%(Money spent on crackers has an alternative investment with annual
interest of 26%)
1) Calculate the EOQ:
2a) Round up your EOQ solution to the whole case and calculate TAC ($).
2b) Round down your EOQ solution to the whole case and calculate TAC ($).
2c) For Q (EOQ), should you:
Round up to the whole case?
Round down to the whole case?
For this product for ACDC it does not matter.?
3) How many times per year do you expect to order the single-serve cracker package cases? (no need to round)
4) What do you expect the average number of days between single-serve cracker package cases will be?(no need to round)

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