Question: This is an update of my Example when introducing the Instantaneous EOQ model in the powerpoint. Assume that carrying cost is $1/unit/week: order cost is

This is an update of my Example when introducing

This is an update of my Example when introducing the Instantaneous EOQ model in the powerpoint. Assume that carrying cost is $1/unit/week: order cost is $100/order: and demand is 1 unit/day. Suppose that this company is currently running a policy of ordering Q = 50 units each time. (Note, the real Q* is 37.21 as shown in the notes) a) If they order 50 units each time, what is the Total Setup Cost, Total Holding Cost, and Total Annual Inventory Cost? Which is greater, Total Setup Cost or Total Holding Cost for the year? b) Given your answer in a), should they be increasing or decreasing Q = 50 in order to lower costs? c) What is their average inventory with this policy of Q = 50? d) If I placed an order on October 30th, will I most likely place an order in November? Why or why not

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