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Matt runs a mens clothing line. Matt needs to buy 12,000 shirts per year to fulfill demand (D). He incurs a setup cost of $100
- Matt runs a mens clothing line. Matt needs to buy 12,000 shirts per year to fulfill demand (D). He incurs a setup cost of $100 (S) and a holding fee (H) of $16 per shirt. What is his EOQ?
- Changing the facts: Matt runs a restaurant. Matt needs to buy 1000 lbs of pasta per year to fulfill demand (D). He incurs a setup cost of $150 (S) and a holding fee (H) of $25 per pound. What is his EOQ?
- Changing the facts: Matt runs a restaurant. Matt needs to buy 3000 pounds of tomatoes per year to fulfill demand (D). He incurs a setup cost of $200 (S) and a holding fee (H) of $15 per pound. What is his EOQ
- If tomatoes have an average shelf life of 3 days, how many pounds should Matt order?
- Adjustment for Spoilage:
- New Order quantity:
- If tomatoes had an average shelf life of 8 days, how many pounds should Matt order?
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