a. Which inventory model fits the best to this problem? O A. All-units quantity discounts model B. One-time sale model OC. POQ model O D. Lumpy demand model O E. Incremental quantity discounts model OF. EOQ model b. Scary Clowns should produce units in each batch (round your response to the nearest integer). c. The total annual setup and holding cost for Scary Clowns using this policy is $ (round your response to the nearest dollar).

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Scary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 900 cases every 4 months from Scary Clowns. Scary Clowns incurs setup costs of $5,000 every time it produces
these cases, and its annual holding cost per case is $14.
a. Which inventory model fits the best to this problem?
A. All-units quantity discounts model
B. One-time sale model
C. POQ model
D. Lumpy demand model
E. Incremental quantity discounts model
F.
EOQ model
b. Scary Clowns should produce units in each batch (round your response to the nearest integer).
c. The total annual setup and holding cost for Scary Clowns using this policy is $ (round your response to the nearest dollar).
Transcribed Image Text:Scary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 900 cases every 4 months from Scary Clowns. Scary Clowns incurs setup costs of $5,000 every time it produces these cases, and its annual holding cost per case is $14. a. Which inventory model fits the best to this problem? A. All-units quantity discounts model B. One-time sale model C. POQ model D. Lumpy demand model E. Incremental quantity discounts model F. EOQ model b. Scary Clowns should produce units in each batch (round your response to the nearest integer). c. The total annual setup and holding cost for Scary Clowns using this policy is $ (round your response to the nearest dollar).
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