The annual demand is 4,500,000 units. The carrying cost is RM0.50 per unit; The price of...

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The annual demand is 4,500,000 units. The carrying cost is RM0.50 per unit; The price of a medical glove is RM1.50; The ordering cost is RM2,000 per order; The desired safety stock level 120,000 units; The delivery time is 10 days. If the price increased by 40%, what will happen to EOQ? (Assumed the original demand level and ordering cost remain constant). What is the elasticity of EOQ with respect to price? (That is, the percentage change in EOQ divided by the percentage change in price). The annual demand is 4,500,000 units. The carrying cost is RM0.50 per unit; The price of a medical glove is RM1.50; The ordering cost is RM2,000 per order; The desired safety stock level 120,000 units; The delivery time is 10 days. If the price increased by 40%, what will happen to EOQ? (Assumed the original demand level and ordering cost remain constant). What is the elasticity of EOQ with respect to price? (That is, the percentage change in EOQ divided by the percentage change in price).

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The optimal EOQ is the ideal order quantity that a firm should buy in order to minimize inven... View the full answer