Question: The current order quantity for Electric Powerbars is 1 0 0 bars. The order cost is $ 1 0 per order, the holding cost is
The current order quantity for Electric Powerbars is bars. The order cost is $ per order, the holding cost is $ per bar per year, and the annual demand is bars per year.
a Calculate the annual holding cost plus the annual ordering cost to get the total annual cost when using an order quantity of bars.
b Calculate the EOQ and the total annual cost for this order quantity.
c How many orders per year are necessary when How many orders per year are necessary for the EOQ in part
d Graph the annual inventory cost IC using MS Excel. Show the holding cost, ordering cost, and total inventory cost as a function of order size
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