Question: Jane calculates her EOQ for the Gumbo Pot restaurant using the formula Q = SQUARE ROOT OF (2DS)/H where: D = 8, S = $5.00,

Jane calculates her EOQ for the Gumbo Pot

Jane calculates her EOQ for the Gumbo Pot restaurant using the formula Q = SQUARE ROOT OF (2DS)/H where: D = 8, S = $5.00, H = $10.00. These numbers are based on Jane's current two-bin system. Jane is trying to determine if lean manufacturing would work for the Gumbo Pot Restaurant. She has decided to move from a two-bin to a one-bin system. Holding all other variables constant calculate EOQ using both the two-bin and the one-bin system and choose the associated rationale for the difference in the EOQ. Select one or more: a. EOQ for two-bin system = 1.79, EOQ for one-bin system = 4.0, since Jane reduced holding costs she is able to order a greater quantity per order b. There is no relationship between EOQ and the number of bins. c. EOQ for two-bin system = 1.79, EOQ for one-bin system = 3.27, since Jane reduced holding costs she is able to order a greater quantity per order d. EOQ for two-bin system = 2.83, EOQ for one-bin system = 4.0, since Jane reduced holding costs she is able to order a greater quantity per order e. EOQ for two-bin system = 4.0, EOQ for one-bin system = 2.83, since Jane reduced holding costs she must order a lower quantity per order

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