This Question: 6 pts 28 of 36 (0 complete) ? This Test: 100 pts possi Question H

Question

This Question: 6 pts 28 of 36 (0 complete) ? This Test: 100 pts possi Question Help Wang Distributors has an annual demand for an airport metal detector of 1,360 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit oost, and he order ng cost s $24 per order f Ping Wang, the owner, orders in quantites of 300 or more ho can get a 10% discount on the cost of the deteciors. Should Wong take the quantity discount? What is the EOQ without the discount? EOa " ? units (round your rosponse to one decina, piace). the total cost without the discount, Wang Since the total cost with the disoount is discount. order 300 units at a time in order to qualify for the

Explanation / Answer

EOQ = Sqroot{(2 * Demand * ordering cost )/(carrying cost)}

= Sqroot {(2 * 1360 * 24)/(0.2*400)}

= Sqroot 816

= 28.56

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