Question
Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 390 units. Ordering cost is $41; holding
Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 390 units. Ordering cost is $41; holding cost is $5 per unit per year.
a) To minimize the total cost, how many units should be ordered each time an order is placed? EOQ = enter your response here units (round your response to the nearest whole number).
b) If the holding cost per unit was $6.00 instead of $5, what would the optimal order quantity be?
New EOQ = enter your response here units (round your response to the nearest whole number).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started