solution
An assistant manager is reviewing the costs associated with one of her retail store’s better-selling products. The associated data available are shown below:
Demand = 400 units/year
Ordering cost = $25/order
Holding cost = 50¢/unit/year
a. They currently order a one-year supply at once. What are the (1) total annual ordering cost and (2) annual holding cost (separately) for the current order policylie, lot size. Q)? For full credit show your work using a blank sheet.
b. What are (1) the EOQ level (Q”) and its associated (i.e, updated) (1) total annual ordering and (2) holding costs (separately)? Again, show your work for full credit – show your work for both questions, ‘a’ and ‘b’on a single sheet and upload it back into Canvas
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