Question: EOQ Assignment 2 SCM 366 This is problems # 5 from page 303, chapter 11 of the textbook Amazon sells 20,000 units of consumer electronics

EOQ Assignment 2 SCM 366 This is problems # 5

EOQ Assignment 2 SCM 366 This is problems # 5 from page 303, chapter 11 of the textbook Amazon sells 20,000 units of consumer electronics from Samsung every month. Each unit costs $100 and Amazon has an annual holding cost of 20%. The fixed clerical and transportation cost for each order Amazon places with Samsung is $4000. a. What is the optimal order size, Q*, that Amazon should place with Samsung? 9797.958971 Optimal Order Quantity= Q* = EOQ SQRT (2*240000*4000)/20) b. With the goal of reducing inventories, Amazon would like to reduce the size of each order it places with Samsung to 2,500 units (allowing it to get 8 replenishments each month). What will the fixed cost per order need to be for an order of 2,500 units to be optimal

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