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If D​ = 8 comma 300 per​ month, S​ = ​$47 per​ order, and H​ = ​$2.00 per unit per​ month
​a) What is the economic order​ quantity? The EOQ is 625 units ​(round your response to the nearest whole​ number).
​b) How does your answer change if the holding cost​ doubles? The EOQ is nothing units ​(round your response to the nearest whole​ number
c) What if the holding cost drops in half?

Respuesta :

Answer:

(a) 625 units (Approx)

(b) 442 units (Approx)

(c) 883 units (Approx)

Explanation:

(a) Economic Order quantity:

[tex]=\sqrt{\frac{2\times Demand\times Ordering\ Cost}{Holding\ cost} }[/tex]

[tex]=\sqrt{\frac{2\times 8,300\times 47}{2} }[/tex]

      = 625 units (Approx)

(b) Economic Order quantity:

[tex]=\sqrt{\frac{2\times Demand\times Ordering\ Cost}{Holding\ cost} }[/tex]

[tex]=\sqrt{\frac{2\times 8,300\times 47}{4} }[/tex]

      = 442 units (Approx)

(c) Economic Order quantity:

[tex]=\sqrt{\frac{2\times Demand\times Ordering\ Cost}{Holding\ cost} }[/tex]

[tex]=\sqrt{\frac{2\times 8,300\times 47}{1} }[/tex]

      = 883 units (Approx)

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