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. Over the past year, Jane has seen demand for her gumbo double. In order to accommodate the increase in demand, Jane decides to reduce setup costs to $1.00. Calculate the new EOQ at the doubled demand and the new setup cost. What is a common method employed to reduce setup costs? Choose the correct EOQ value that reflects the doubled demand, the reduction in setup costs, and the method usually employed to reduce setup costs. Select one or more: a. EOQ at doubled demand and reduced setup costs = 1.79, employ technology Ob. EOQ at doubled demand and reduced setup costs = 17.9, increase fixed costs c. EOQ at doubled demand and reduced setup costs = 9.17, increase variable costs d. EOQ at doubled demand and reduced setup costs = 19.7, employ forecasting e. EOQ at doubled demand and reduced setup costs = 7.79, employ behavioral strategies

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