Question: Demand for an item is projected to be 1 8 0 units per month. The monthly holding cost is $ 2 per unit, and it
Demand for an item is projected to be units per month. The monthly holding cost is $ per unit, and it costs $ to process an order.
a Determine the EOQ. Round the final answer to the nearest whole number.
EOQ
units
b If the vendor is willing to offer the manager a discount of $ per order for ordering in multiples of units eg would you advise the manager to take advantage of the offer?
multiple choice
Yes
No
b If so what order quantity would you recommend?
multiple choice
c Alternatively, if the demand can wait at the cost of $ per unit per month, what should the order quantity and the amount short per order cycle beRound the final answers to the nearest whole number.
Order quantity
units
Amount short per order cycle
units
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