Question: Suppose Joe orders the quantity from part ( c ) that minimizes the sum of the ordering and holding costs each time he places an
Suppose Joe orders the quantity from part c that minimizes the sum of the ordering and holding costs each time he places an order with the supplier. What is the annual cost of the EOQ expressed as a percentage of the annual purchase cost?
Note: Round your answer to decimal places.
If Joes supplier only accepts orders that are an integer multiple of gallons, how much should Joe order to minimize ordering and holding costs per gallon?
Joes supplier offers a percent discount if Joe is willing to purchase gallons or more. What would Joes total annual cost purchasing ordering, and holding be if he were to take advantage of the discount?
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