Question: You have been tasked with determining the EOQ for a certain aspect of RMI. Fixed ordering costs are $ 3 5 per order, total periodic

You have been tasked with determining the EOQ for a certain aspect of RMI. Fixed ordering costs are $35 per order, total periodic demand is 10,000 units and the per unit holding costs is $4.
a. calculate the EOQ
b. Your purchasing manager has just told you that she can renegotiate the fixed ordering cost down to $30 per order. Determine the effect of this change on the EOQ.
c. Using the original assumptions, recalculate the EOQ if the per unit holding cost increases to $6.

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