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A local pharmaceutical distributor decreases its deliveries to retail pharmacies from 6 days a week (Monday-Saturday) to 5 days a week (Monday-Friday) to reduce its
A local pharmaceutical distributor decreases its deliveries to retail pharmacies from 6 days a week (Monday-Saturday) to 5 days a week (Monday-Friday) to reduce its labor costs. This change will cause the EOQ for each retail pharmacy client that receives deliveries to increase by approximately 40% relative to 6 day a week delivery. (HINT: assume that ordering costs are proportional to the number of deliveries made per week. So, in this example, assume that 5 days of deliveries cost 5/6 of what 6 days of deliveries would cost). Question 2 options: True False
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