How do you get these answers thanks Pam runs a mail-order business for gym equip

Question

How do you get these answers thanks

Pam runs a mail-order business for gym equipment. Annual demand for TricoFlexers is 14,000. The annual holding cost per unit is $3.75, and the cost to place an order is $65. a. What is the economic order quantity? The EOQ is 697 . (Enter your response rounded to the nearest whole number.) b. Suppose demand for TricoFlexers doubles, to 28,000 The EOQ for the new value of demand is 985. (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 demand. B. Yes, the EOQ doubles because the EOQ is directly proportional to the demand ??. No, the EOQ does not double as the annual demand doubles. The EOQ increases by the square-root of the product of two-times the demand times ordering cost, divided by holding cost. D. No, the EOQ does not double as the annual demand doubles. The EOQ is inversely proportional to the square-root of the demand c. The manufacturer of TricoFlexers has agreed to offer Pam a price discount of $3 per unit ($62 rather than $65) if she buys 2,900. Assuming that annual demand is still 14,000, how many units should Pam order at a time? Pam should order 2,900 units at a time. (Enter your response rounded to the nearest whole number.)

Explanation / Answer

a. EOQ = sqroot{(2 * demand * Ordering Cost)/(Holding Cost)}

= sqroot{(2 * 14000* 65)/(3..75)}

= 697 (Approximately)

b. EOQ = sqroot{(2 * 28000 * 65)/(3..75)}

= 985 (Approximately)

c. In this case if she buys 2900 then that should be ordered at a time as it will reduce the ordering cost as the order needs to be placed for less number of times.

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