Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 395 units. Ordering cost is $36; holding cost is $5 per unit per year. a) To minimize the total cost, how many units should be ordered each time an order is placed? EOQ = units (round your response to the nearest whole number).
Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 395 units. Ordering cost is $36; holding cost is $5 per unit per year. a) To minimize the total cost, how many units should be ordered each time an order is placed? EOQ = units (round your response to the nearest whole number).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![**Matthew Liotine's Dream Store** sells water beds and assorted supplies. His best-selling bed has an annual demand of 395 units. Ordering cost is $36; holding cost is $5 per unit per year.
**a) To minimize the total cost, how many units should be ordered each time an order is placed?**
EOQ = [____] units *(round your response to the nearest whole number).*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F60ae2238-d375-4701-9aec-2226c586eada%2F18af291e-b598-48a3-a79f-b773ceae2ec1%2Fbhw8gx_processed.png&w=3840&q=75)
Transcribed Image Text:**Matthew Liotine's Dream Store** sells water beds and assorted supplies. His best-selling bed has an annual demand of 395 units. Ordering cost is $36; holding cost is $5 per unit per year.
**a) To minimize the total cost, how many units should be ordered each time an order is placed?**
EOQ = [____] units *(round your response to the nearest whole number).*
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