Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 390 units. Ordering cost is $47; holding cost is $5 per unit per year a) To minimize the total cost, how many units should be ordered each time an order is placed? EOQ = units (round your response to the nearest whole number). b) If the holding cost per unit was $6.00 instead of $5, what would the optimal order quantity be? New EOQ = units (round your response to the nearest whole number).

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 390 units. Ordering cost is $47; holding cost is $5 per unit per year.
a) To minimize the total cost, how many units should be ordered each time an order is placed?
EQQ = units (round your response to the nearest whole number).
b) If the holding cost per unit was $6.00 instead of $5, what would the optimal order quantity be?
New EOQ = units (round your response to the nearest whole number).
Transcribed Image Text:Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 390 units. Ordering cost is $47; holding cost is $5 per unit per year. a) To minimize the total cost, how many units should be ordered each time an order is placed? EQQ = units (round your response to the nearest whole number). b) If the holding cost per unit was $6.00 instead of $5, what would the optimal order quantity be? New EOQ = units (round your response to the nearest whole number).
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