Item$3$

Time Remaining $1$ hour $52$ minutes $41$ seconds$01$:$52$:$41$

eBookItem $3$

Time Remaining $1$ hour $52$ minutes $41$ seconds$01$:$52$:$41$

Demand for an item is projected to be $220$ units per month. The monthly holding cost is $$2$ per unit, and it costs $$70$ to process an order.

a$.$ Determine the EOQ. $($Round the final answer to the nearest whole number.$)$

EOQ

units

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 $1$

Yes

No

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

multiple choice $2$

$124$

$50$

$100$

c$.$ Alternatively, if the demand can wait at the cost of $$5$ 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