Question: R = Annual Demand = 5 0 , 0 0 0 A = Order Cost = $ 9 0 V = Product Cost = $

R= Annual Demand =50,000
A= Order Cost =$90
V= Product Cost =$120
W= Inventory C? Cost =15%
Scenario 1
The annual demand has increased by 100%(or we could also blandly say that it doubled!)
What is the new EOQ?
Scenario 2
The vendor has imposed a price increase on the product of 5%.
What is the new EOQ?
Scenario 3
The SCM/Finance Committee has determined that the Inventory Carrying Cost percentage should be more in line with the industry standard of 25%.
What is the new EOQ?Nth n
R= Annual Demand =50,000
A= Order Cost =$90
V= Product Cost =$120
W= Inventory C? Cost =15%
Scenario 1
The annual demand has increased by 100%(or we could also blandly say that it doubled!)
What is the new EOQ?
Scenario 2
The vendor has imposed a price increase on the product of 5%.
What is the new EOQ?
Scenario 3
The SCM/Finance Committee has determined that the Inventory Carrying Cost percentage should be more in line with the industry standard of 25%.
What is the new EOQ?
 R= Annual Demand =50,000 A= Order Cost =$90 V= Product Cost

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