Akyurt Supermarket sells Eti Ho?be? Wafers. Demand for Ho?be? is 9645 packages annually. Akyurt has a holding cost of 30 percent and incurs a fixed cost of \$122 for each replenishment order it places for Ho?be? Wafers. (i) Given that the cost is \$4 per package of Ho?be?, how much should Akyurt order in each replenishment lot? (ii) If Eti makes a trade promotion and lowers the price of Ho?be? to \$3.4000 for a month, what is the forward buy amount of Akyurt given the short-term price reduction? Select one: \(\circ\) a. (i) 1400 (ii) 5921 \(\circ\) b. (i) 1400 (ii) 7321 \(\circ\) c. (i) 404 (ii) 7321 \(\circ\) d. (i) 404 (ii) 6917
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20 Plugging in the values, we get: EOQ = √((2 * 9645 * 122) / 1.20) = √(2356740 / 1.20) = √1963950 ≈ 1400 Show more…
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