Henry Crouch's law office has traditionally ordered ink refills 50 units at a time. The firm estimates that carrying cost is 40% of the $9 unit cost and that annual demand is about 235 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal? a) For what value of ordering cost would its action be optimal? Its action would be optimal given an ordering cost of $ 19.15 per order (round your response to two decimal places). b) If the true ordering cost turns out to be much greater than your answer to part (a), what is the impact on the firm's ordering policy? A. The order quantity should be increased. Your answer is correct. B. The order quantity should be decreased. C. The order quantity should not be changed.

a. $19.15

b. A. The order quantity should be increased. Your answer is correct.

Explanation:

a) For what value of ordering cost would its action be optimal?

Carrying cost = 40% * $9 = $3.60

Optimal ordering cost = (50^2 × 3.60) ÷ (2 × 235) = $19.15.

Therefore, the optimal ordering cost of $ 19.15 per order will make his action to be optimal

b) If the true ordering cost turns out to be much greater than your answer to part (a), what is the impact on the firm's ordering policy?

A. The order quantity should be increased.

The reason is that any ordering cost higher than $19.15 will not be optimal and result to a loss. The best to avoid this is to reduce order quantity.

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.