Question
Now assume that eight percent of the chemical is not used and disposed of, with a disposal cost of $0.55/lb. Find the EOQ and total
Now assume that eight percent of the chemical is not used and disposed of, with a disposal cost of $0.55/lb. Find the EOQ and total cost when disposal costs are incorporated into the model. (Hint: add to the holding cost the disposal cost times the percent of product that is disposed of.) Round your answer for the EOQ to the nearest whole number and round your answer for the total cost to the nearest cent. Use the rounded EOQ value in your calculations. Do not round any other intermediate calculations. Economic Order Quantity: lb Total cost: $ What implications do these results have for sustainability practices? Although the total cost in part b is , by adjusting the economic order quantity, the company actually save additional costs while protecting the environment.
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