Question: This problem requires eoq with lumpy demand. what are the answers to b. and c.? Scary Clowns, Inc, supplies special makeup cases to a major
Scary Clowns, Inc, supplies special makeup cases to a major circus. The circus orders its EOQ of 850 cases every 3 months from Scary Clowns. Scary Clowns incurs setup costs of $5,100 every time it produces these cases, and its annual holding cost per case is $13. a. Which inventory model fits the best to this problem? A. All-units quantity discounts model B. Lumpy demand model C. Incremental quantity discounts model D. One-time sale model E. EOQ model F. POQ model b. Scary Clowns should produce units in each batch (round your response to the nearest integer). c. The total annual setup and holding cost for Scary Clowns using this policy is $ (round your response to the nearest dollar)
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