Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 400 units. Ordering cost is $38; 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 = enter your response here units (round your response to the nearest whole number). b) If the holding cost per unit was $6.00 instead of $5, what would the optimal order quantity be? New EOQ = enter your response here 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 400 units. Ordering cost is $38; 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 = enter your response here units (round your response to the nearest whole number). b) If the holding cost per unit was $6.00 instead of $5, what would the optimal order quantity be? New EOQ = enter your response here 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 400 units. Ordering cost is $38;
holding cost is $5 per unit per year.
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 =
enter your response here
units (round your response to the nearest whole number).b) If the holding cost per unit was $6.00 instead of $5, what would the optimal order quantity be?
New EOQ =
enter your response here
units (round your response to the nearest whole number).Expert Solution
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