f a firm wanted to reduce the annual EOQ cost as a percentage of the annual purchase cost by 50 percent, how would the demand rate have to change?
(Please attempt thus question if you will provide Solution for both questions below...thanks)
1) If a firm wanted to reduce the annual EOQ cost as a percentage of the annual purchase cost by 50 percent, how would the demand rate have to change?
A) Decrease by 50 percent.
B) Remain unchanged.
C) Increase by 50 percent.
D) Double.
E) Quadruple.
Select correct option and explain answer with Calculation.
2) A firm evaluates its EOQ quantity to equal 180 cases, but it chooses an order quantity of 200 cases. Relative to the order quantity of 180 cases, the order quantity of 200 cases has
A) higher ordering cost and higher holding cost.
B) higher ordering cost and lower holding cost.
C) lower ordering cost and higher holding cost
D) lower ordering cost and lower holding cost.
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