Demand for an item is projected to be 270 units per month. The monthly holding cost is $3 per unit, and it costs $55 to process an order. a. Determine the EOQ. (Round the final answer to the nearest whole number.)

EOQ = ?

b-1. If the vendor is willing to offer the manager a discount of $15 per order for ordering in multiples of 50 units (e.g., 50, 100), would you advise the manager to take advantage of the offer?

multiple choice

Yes

No

b-2. If so, what order quantity would you recommend?

multiple choice

99

50

100

c. Alternatively, if the demand can wait at the cost of $4 per unit per month, what should the order quantity and the amount short per order cycle be? (Round the final answers to the nearest whole number.)

Order quantity= ? units

Amount short per order cycle = ? units