Question: OneBite technology an online electronics retailer with a central depot in Calgary, A.B, buy a steady-selling doorbell camera from the manufacturer at $50/unit. The weekly

OneBite technology an online electronics retailer with a central depot in Calgary, A.B, buy a steady-selling doorbell camera from the manufacturer at $50/unit. The weekly demand for this product is steady at 70 units. The fixed ordering cost is $100 per order and the annual holding cost rate is 30% of the unit purchasing cost. There are 52 weeks/year.

1. Right now Onebite is implementing an EOQ policy. Determine the order quantity and the total annual inventory related cost.

2. Assume Onebite created a system that lowered its fixed costs by 50%. Answer the following:

Does the EOQ increase, decrease, or stay the same?

Does the Number of orders/year increase, decrease, or stay the same?

Do the total inventory-related costs increase, decrease, or stay the same?

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