Demand for an item is projected to be 170 units per month. The monthly holding cost...

Transcribed Image Text:

Demand for an item is projected to be 170 units per month. The monthly holding cost is $3 per unit, and it costs $50 to process an order. a. Determine the EOQ. (Round the final answer to the nearest whole number.) EOQ b-1. If the vendor is willing to offer the manager a discount of $4 per order for ordering in multiples of 50 units (e.g., 50, 100), would you advise the manager to take advantage of the offer? O No O Yes units b-2. If so, what order quantity would you recommend? O 50 O 100 75 c. Alternatively, if the demand can wait at the cost of $6 per unit per month, what should the order quantity and the amount short per order cycle be? (Round the final answers to the nearest whole number.) Order quantity Amount short per order cycle units units Demand for an item is projected to be 170 units per month. The monthly holding cost is $3 per unit, and it costs $50 to process an order. a. Determine the EOQ. (Round the final answer to the nearest whole number.) EOQ b-1. If the vendor is willing to offer the manager a discount of $4 per order for ordering in multiples of 50 units (e.g., 50, 100), would you advise the manager to take advantage of the offer? O No O Yes units b-2. If so, what order quantity would you recommend? O 50 O 100 75 c. Alternatively, if the demand can wait at the cost of $6 per unit per month, what should the order quantity and the amount short per order cycle be? (Round the final answers to the nearest whole number.) Order quantity Amount short per order cycle units units