1. annual demand- 10,000 units, ordering cost is $100 per order, and inventory carrying cost per unit is $5
EOQ= , where A is annual demand, O is ordering cost and C is carrying csot
EOQ= = 632.45 units, take it as 632 units per order
2. number of orders= 10,000/632= 15.822 orders
total ordering cost= 15.822*100= $1582.2
3. sensitivity analysis and EOQ: sensitivity analysis is the study of probabilistic values in a given problem, where as EOQ is the study of fixed unit ordering for a given demand.
Please be clear with the steps of the solution roblem (4: a- A Tayyar company sells...
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