SCMN $3710$

Assignment $-$ EOQ Fixed Order Quantity with Certainty

Read the following mini$-$case for questions $3-6.$

Last year Rick Palmer retired from playing gigs and opened a guitar store in his home town of Hobbs, New Mexico. By leveraging his website, sales have grown to a current level of $1,800$ per month, which comes out at $21,600$ units annually. Rick estimates it costs him $$8$ each time he places an order with his supplier. He would like to grow his business but worries about the $$15$ cost his assistant manager says it costs to store each guitar.

$3.$ In the case above, what is the value of $R?$

a$)8$

b$)15$

c$)1,800$

d$)21,600$

$4.$ In the case above, what is the value of $A?$

a$)8$

b$)15$

c$)1,800$

d$)21,600$

$5.$ In the case above, what is the value of $S?$

a$)8$

b$)15$

c$)1,800$

d$)21,600$

$6.$ In the case above, what is the value of $Q($to the nearest whole number$)?$

a$)43$

b$)152$

c$)191$

d$)1,800$