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A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per...

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Question

Operations Management

A product whose EOQ is 40 units experiences a decrease inordering cost from $90 per order to $22.5 per order. The revisedEOQ is:

a) three times as large.

b) one-third as large.

c) nine times as large.

d) one-ninth as large.

e) half as large.

f) cannot be determined.

Answer & Explanation Solved by verified expert
3.7 Ratings (345 Votes)
Ans e Half as largeWorkingWe know EOQ 2DK hD Annual DemandK Ordering costh holding cost per unit per unit    See Answer
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