Question: Using the famous EOQ formula, you have arrived at an optimal quantity of 1 0 0 0 coffee cups for your caf . Your ordering
Using the famous EOQ formula, you have arrived at an optimal quantity of coffee cups for your caf Your ordering cost is mainly the fixed shipping cost charged by the supplier for each order, irrespective of its size.
Your supplier has indicated that due to significant cost increases in fuel, labour and vehicle maintenance in recent months, the fixed shipping cost will be increased by
Based on this change in your ordering cost, how should you adjust your order quantity?
Using the famous EOQ formula, you have arrived at an optimal quantity of coffee cups for your caf Your ordering cost is mainly the fixed shipping cost charged by the supplier for each order, irrespective of its size.
Your supplier has indicated that due to significant cost increases in fuel, labour and vehicle maintenance in recent months, the fixed shipping cost will be increased by
Based on this change in your ordering cost, how should you adjust your order quantity?
Maintain the same order quantity.
Increase your order quantity by
Increase your order quantity by
Reduce your order quantity by
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