Question: If you had a choice to decide between two Lot size approaches ( Ordering in multiple of 50 or following EOQ size of order), which
If you had a choice to decide between two Lot size approaches ( Ordering in multiple of 50 or following EOQ size of order), which one would you pick? Why? Show the details of your calculations.
Note:
Assume we have 52 weeks a year.
round the EOQ up to closest number
| Holding cost per week | 0.4 | |||
| Ordering cost per order | 30 | |||
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