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Pam runs a mail - order business for gym equipment. Annual demand for TricoFlexers is . The annual holding cost per unit is $ ,
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 $
Part
a What is the economic order quantity?
The EOQ is
enter your response here. Enter your response rounded to the nearest whole number.
Part
b Suppose demand for TricoFlexers doubles, to
The EOQ for the new value of demand is
enter your response here. Enter your response rounded to the nearest whole number.
Part
Does the EOQ also double?
A
Yes the EOQ doubles because the EOQ is directly proportional to the demand.
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
No the EOQ does not double as the annual demand doubles. The EOQ is inversely proportional to the demand.
Part
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
enter your response here units at a time. Enter your response rounded to the nearest whole number.
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