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EOQ analysisTiger Corporation purchases 1,370,000 units per year of one component. The fixed cost per order is $56. The annual carrying cost of the item

EOQ analysisTiger Corporation purchases

1,370,000

units per year of one component. The fixed cost per order is

$56.

The annual carrying cost of the item is

27.7%

of its

$9.96

cost.a. Determine the EOQ if (1) the conditions stated above hold, (2) the order cost is $1.00 rather than

$56,

and (3) the order cost is

$56

but the carrying cost is

$0.01.

b.What do your answers illustrate about the EOQ model? Explain.

a. (1) If there are no changes in the costs, the EOQ is nothing units.(Round to the nearest integer. For infinity, input INF)

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