Question: You are determining the optimal ordering quantity, and Q*=1000 units per order using the EOQ formula. It was brought to your attention that the data

You are determining the optimal ordering quantity, and Q*=1000 units per order using the EOQ formula. It was brought to your attention that the data made available to you is erroneous and the correct data is such that the annual demand is 100% more than what you used, the setup cost is 81.5% higher, and the holding cost is 200% more than the cost you originally used. Using this new data, which of the following is the new Q*

1100 units

1210 units

1000 units as EOQ is not very sensitive to changes in parameters

638 units

We cannot determine the optimal amount

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