5. Using the appropriate model (EOQ or EPQ) answer the following questions:
a) In the basic EOQ model, if the cost of placing an order doubles, and all other values remain constant, will the EOQ value increase or decrease and by what percentage?
b) A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per order to $10 per order. The revised EOQ is? (2 points
c) A product has a demand of 4000 units per year. Ordering cost is $20, and holding cost is $4 per unit per year. The lead-time is doubling from 2 days to 4 days, what is the impact to the economic order quantity? Why?
d) In the basic EPQ model, if the cost of holding a unit of inventory for a year doubles, and all other values remain constant, will the EPQ value increase or decrease and by what percentage?
e) A production order quantity problem has a daily demand rate = 10 and a daily production rate = 40. The production order quantity for this problem is approximately 612 units. What is the average inventory for this problem?
ScholarMatic: Explanation & Answer
Your ready answer from a verified tutor is just a click away for as little as $14.99
Click Order Now to get 100% Original Answer Customized to your instructions!
