the ordering cost is $108, and the 16. In the basic B0Q model, if annual demand
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Question
the ordering cost is $108, and the 16. In the basic B0Q model, if annual demand is $40 units bolding cost of one unit per year is S10, the resulting EOQ value would be A) 108 B) 46 34 120 has an average demand of 1200 burgers iday with a standard burgers. The lead time from when the order is placed to delivery at the has averaged 2 days with a standaed deviation of o 5 days. If the restaurant wants to keep a safety stockof 300 brgers, at what inventory level should the 17. A local burger restaurant has a deviation of 600 ender A) 2400 burgers B) 6000 burgers C) 4800 burgers D) 2700 buagers Mir salon orders bottles ofshepoo-a-. The dm krthampoo is 10, , There is a 520 charge Sor placing n order and a 56 cost per bottle to b s. A bettles per year in invesony Sor the yeerThesupiefdefolowing price discounts based o A) 89 bestles 251 hottles 376 hotleExplanation / Answer
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16)
EOQ = Sqrt(2*Annual demand*ordering cost/holding cost)
=SQRT(540*2*108/10)
= 108 units.
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