Question: In the basic EOQ model, if ordering cost per order increases 50%, the optimal lot size increases 22.5% 50% 41.4% 9.5% Prefab, a furniture manufacturer,

In the basic EOQ model, if ordering cost perIn the basic EOQ model, if ordering cost per

In the basic EOQ model, if ordering cost per order increases 50%, the optimal lot size increases 22.5% 50% 41.4% 9.5% Prefab, a furniture manufacturer, uses 32,000 square feet of plywood per year. The ordering cost is $80 dollars for every order and holding cost fraction is 25 percent. Assuming the current price is $1.00 per square feet of plywood, if the supplier offers a short term promotion to reduce the price to $0.95 instead, how much would Prefab2's forward buy be? 5,474 6,975 4,525 11,501

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