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3. Pam runs a mail-order business for gym equipment. Annual demand for TricoFlexers is 16,000 . The annual holding cost per unit is $2.50, and
3. Pam runs a mail-order business for gym equipment. Annual demand for TricoFlexers is 16,000 . The annual holding cost per unit is $2.50, and the cost to place an order is $50. a. (*) What is the economic order quantity? b. () Suppose demand for TricoFlexers doubles, to 32,000. Does the EOQ also double? Explain what happens. c. () The manufacturer of TricoFlexers has agreed to offer Pam a price discount of $5 per unit ( $45 rather than $50 ) if she buys 1,500 . Assuming that annual demand is still 16,000 , how many units should Pam order at a time
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