Chapter $9-$ EOQ

Jennifer Smith the assistant manager of You Think It$,$ We Make It is reviewing the costs associated with

the store's best$-$selling product which is currently being sold at a demand of $150$ units per week for

$$\frac{75}{?}$ unit. The order cost is $$50$ per order and the holding cost is $15\%$ of the unit price. Jennifer Smith

wants to assess the following information.

a$.$ What is the EOQ?

b$.$ What is the annual ordering cost?

c$.$ What is the annual holding cost?

d$.$ What is the total annual cost?

e$.$ What is the TBO for the days, weeks, months?

f$.$ What is the optimal number of orders per year?

g$.$ If annual demand doubles and all other costs remain the same, what is the new EOQ and total

annual cost?