Question: NEAREST WHOLE # a) What is the EOQ? b) What is the total cost if the EOQ is used without the discount? c) What is

NEAREST WHOLE # a) What is the EOQ? b) What is

NEAREST WHOLE #

a) What is the EOQ?

b) What is the total cost if the EOQ is used without the discount?

c) What is the total cost if Wang orders 300 units at a time in order to qualify for the discount?

d) Since the total cost with the discount is (GREATER THAN/LESS THAN) the total cost without the discount, Wang (SHOULD/SHOULD NOT) order 300 units at a time in order to qualify for the discount.

Wang Distributors has an annual demand for an airport metal detector of 1,350 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $22 per order. If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 7% discount on the cost of the detectors. Should Wang take the quantity discount

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