Question: capacity OD. When the demand is deterministic and variable, EOQ is the model to use. QUESTION 6 Jack is managing the vaccine for coronavirus for


capacity OD. When the demand is deterministic and variable, EOQ is the model to use. QUESTION 6 Jack is managing the vaccine for coronavirus for a clinic. Since the demand is always at capacity it is constant. The capacity is 3000 patients per month. Each patient needs one dose. Every time Jack place an order, he needs to pay a fixed ordering cost of $500. Since the vaccine needs refrigeration, it cost $1 per dose per month to hold. The unit cost per dose is $100. The interest rate is close to zero, therefore, the capital cost is negligible. Jack wants to determine how many doses to order to minimize the total inventory cost. Which of the following statement is not true? O A. If the order quantity is 500, the total inventory cost excluding the purchasing cost is 4000. O B. It is an EOQ problem. O C. If the order quantity is 500, we will order 6 times per month. O D. If the order quantity is 500, the average inventory is 250. QUESTION 7 Continue on Q6. if we are allowed to order fraction, the optimal order quantity to minimize the total inventory cost is 2732.051. O True O False
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