Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

In an economic order quantity model (square root of (2 D S / H) ), these were estimated: D = 5000 per year, S =

In an economic order quantity model (square root of (2 D S / H) ), these were estimated: D = 5000 per year, S = $45 per order, H = $ 5 per item per year. The economic order quantity was seen to be 300 units at a time (with about 17 orders per year). If the set up cost (order cost) is reduced from 45 to 14, what would be the new economic order quantity? (Don't round the result, give answer to two decimal places)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Economics questions