Question: You have been tasked with determining the EOQ for a certain aspect of raw materials inventory. Fixed ordering costs are $35 per order, total periodic

You have been tasked with determining the EOQ for a certain aspect of raw materials inventory. Fixed ordering costs are $35 per order, total periodic demand is 10,000 units, and the per-unit holding cost is $4.

a.) Calculate the EOQ.

b.) your purchasing manager ha just told you that she an renegotiate the fixed ordering cost down to $30 per order.

determine the effect on the EOQ.

c.) Using the original assumptions, recalculate the EOQ if the per-unit holding cost increases to $6.

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