If D 5 8,000 per month, S 5 $45 per order, and H 5 $2 per unit

Question:

If D 5 8,000 per month, S 5 $45 per order, and H 5 $2 per unit per month,

a) What is the economic order quantity?

b) How does your answer change if the holding cost doubles?

c) What if the holding cost drops in half? lop5

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