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Pam runs a mail - order business for gym equipment. Annual demand for TricoFlexers is 2 3 , 5 0 0 . The annual holding
Pam runs a mailorder business for gym equipment. Annual demand for TricoFlexers is The annual holding cost per unit is $ and the cost to place an order is $
a What is the economic order quantity?
The EOQ is Enter your response rounded to the nearest whole number.
b Suppose demand for TricoFlexers doubles, to
The EOQ for the new value of demand is Enter your response rounded to the nearest whole number.
Does the EOQ also double?
A No the EOQ does not double as the annual demand doubles. The EOQ is inversely proportional to the Nemand.
B No the EOQ does not double as the annual demand doubles. The EOQ increases by the squareroot of the product of twotimes the demand times ordering cost, divided by holding cost.
C No the EOQ does not double as the annual demand doubles. The EOQ is inversely proportional to the squareroot of the demand.
D Yes, the EOQ doubles because the EOQ is directly proportional to the demand.
c The manufacturer of TricoFlexers has agreed to offer Pam a price discount of $ per unit $ rather than $ if she buys Assuming that annual demand is still how many units should Pam order at a time?
Pam should order units at a time. Enter your response rounded to the nearest whole number.
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