Question: Problem 6: The demand for a product is 4000 boxes per month. The holding cost is 20 %/year and the fixed ordering cost is

Problem 6: The demand for a product is 4000 boxes per month. The holding cost is 20 %/year and the fixed ordering cost is $600 per order. The company is currently using EOQ policy. The supplier regularly charges $4 per box. The supplier is offering a short-term trade promotion to lower price to $3.60 per box. Current situation using EOQ Using Trade promotion EOQ Optimal Q Qwe end up using Annual Holding Cost Annual Ordering Cost Total Inventory Cost # of orders/year Annual Item cost Grand Total Cost Cycle Time Avg. Flow Time Cycle Inventory

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