tory Management 1my instructorZO Points: 0 of 1KMatthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 400 units. Ordering cost is $40; 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).2WSX#3E20D$4CRF%5VTG6Part 1 of 2MacBook ProBYH&7NUJ8DIIIM(9KDDDOV10LcommandF 10P:Clear all;F11option{[+?1Check answerF12}Save1deletereturnA

EOQ is determined with following formula EOQ = 2*Annual demand*Carrying costHolding cost

Answered: Matthew Liotine's Dream Store sells…

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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Using relevant eoq calculations Which order size would you recommend that the hospital use?
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Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 405 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 = 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 = units (round your response to the nearest whole number). A
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