R = annual demand = $35,500 A = Order Cost = $90 V = product cost = $100 W = inv
ID: 325585 • Letter: R
Question
R = annual demand = $35,500 A = Order Cost = $90 V = product cost = $100 W = inventory c/cost = 14% EOQ= 676All questions based on these ^
1. The annual demand has increased by 100% (doubled) what is the new EOQ? 2. The vendor has imposed price increase on the product of 5% what is the new EOQ?
Can you show me how to do these step by step? R = annual demand = $35,500 A = Order Cost = $90 V = product cost = $100 W = inventory c/cost = 14% EOQ= 676
All questions based on these ^
1. The annual demand has increased by 100% (doubled) what is the new EOQ? 2. The vendor has imposed price increase on the product of 5% what is the new EOQ?
Can you show me how to do these step by step? A = Order Cost = $90 V = product cost = $100 W = inventory c/cost = 14% EOQ= 676
All questions based on these ^
1. The annual demand has increased by 100% (doubled) what is the new EOQ? 2. The vendor has imposed price increase on the product of 5% what is the new EOQ?
Can you show me how to do these step by step?
Explanation / Answer
EOQ = sqroot{(2*Ordering Cost * Demand)/Carrying Cost}
676 * 676 = 2*90*Demand/14
Demand = (676 * 676)/(180*14)
= 35500 (Approx)
1. If annual demand is doubled that means the Demand = 35500*2 = 71000
EOQ = sqroot {(2*90*71000)/14}
= 955 (Approx)
2. IF the product cost is increased by 5% then new product cost = 105
Carrying cost = 14% of 105
= 14.7
EOQ = sqroot{(2*90*35500)/14.7}
= `660 (Approx)
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