Please show your work.

Consider the following data for an independent-demand itemmaintained by Angie Bonpensiero, the proprietor of a local autorepair shop:

Weekly demand = 50 units
Ordering cost = $8/order
Holding cost = $4/unit/year
Weeks in a year = 50


Use the information in Scenario 9.6. Due to new ordering proceduresinitiated by Bonpensiero, the ordering cost is drops to $4 perorder. At the same time, the weekly demand increases to 64 unitsper week due to an increase in business. What effect do thesechanges have on the EOQ quantity for this item?

A.		The EOQ quantity remains unchanged.
B.		The EOQ quantity increases by 20%.
C.		The EOQ quantity decreases by 20%.
		D. Sufficient information is not available to answering thisquestion. Please show your work.

Answer rating: 100% (QA)

Answer C The EOQ quantity decreases by 20 Explanati... View the full answer