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 is trying to decide whether she should reduce setup costs to $1.00 or increase holding costs to $15.00. She can ONLY choose ONE of the two choices, NOT BOTH! Calculate the new EOQ at the doubled demand and the $1.00 setup cost holding all other variables constant. Next, calculate the new EOQ at the doubled demand and the $15.00 holding cost holding all other variables constant. Choose the correct answer below and the decision that Jane should make regarding the two choices. Select one or more: a. Reduce setup costs = 1.79, reduce holding costs - 3.27. Jane should reduce setup costs. b. Reduce setup costs - 3.27, reduce holding costs = 1.79, Jane should reduce holding costs. c. Reduce setup costs 2.83, reduce holding costs = 4.0, Jane should reduce setup costs. d. Reduce setup costs - 4.0, reduce holding costs = 2.83, Jane should reduce holding costs. e. Reduce setup costs - 4.0, reduce holding costs = 3.27. Jane should reduce holding costs. 2-005-202040 Operations Management 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: 3. 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. 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 c. There is no relationship between EOQ and the number of bins. d. EOQ for two-bin system = 2.83, EOQ for one-bin system = 40, since Jane reduced holding costs she is able to order a greater quantity por order . EOQ for two-bin system 1.79. ECO for one-bin system - 3 27. since Jane reduced holding costs she is able to order a greater quantity por order Calculate Janes 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. Calculate EOQ at the new doubled demand. Choose the correct answer choice. Select one or more: a. EOQ for Original demand = 3.4, EOQ for Doubled demand = 6.8 b. EOQ for Original demand = 4.0, EOQ for doubled demand = 8.0 C. EOQ for original demand = 8, EOQ for doubled demand = 16 d. EOQ forOriginal demand 2.83, EOQ for Doubled demand 4.0 . EOQ for Original demand 2.83, EOQ for Doubled demand 5.66