Question: Question 1 : EOQ, quadratic holding cost [ 1 5 points ] Recall that in EOQ, we assume that the rate at which cost accrues
Question : EOQ, quadratic holding cost points
Recall that in EOQ, we assume that the rate at which cost accrues due to holding inventory
amount It at a moment in time t is h It
Calculate what the optimal order quantity would be if this were instead h It Assume, as we
do in EOQ, that the time over which we calculate cost is a multiple of T
Hint: use an integral to calculate the total holding cost over one cycle. Then divide by T to get
the average holding cost per unit time.
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