Question: In an economic order quantity model (square root of 2 D S / H), these were estimated: D = 5000 per year, S = $45
In an economic order quantity model (square root of 2 D S / H), these were estimated:
D = 5000 per year, S = $45 per order, H = $ 5 per item per year.
The economic order quantity was seen to be 300 units at a time (with about 17 orders per year).
If the set up cost (order cost) is reduced from 45 to 13, what would be the new economic order quantity?
(Don't round the result, give answer to two decimal places)
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