Question: If the optimal order quantity (economic order quantity) for part 1002 is 60 what will be the holding cost savings if the order quantity is

If the optimal order quantity (economic order quantity) for part 1002

If the optimal order quantity (economic order quantity) for part 1002 is 60 what will be the holding cost savings if the order quantity is cut in half? Unit Part Cost 1001 $8.50 1002 $47.25 1003 $202.50 Avg Std Dev Current On Annual Weekly Weekly Lead Time Hand Ordering Holding Backorder Dmd Dmd (in weeks) Inventory Cost Cost Cost 19 6 38 $125 $55 $1,000 7 112 $225 $45 $1,000 0.5 0.8 6 3 $175 $125 $1,000 2 5 16 $251 $785 $437 $675

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