(Answered) One of the top selling items in a pet shop is a birdfeeder

Finance

One of the top selling items in a pet shop is a birdfeeder. Sales are 18 units per week, and the supplier charges $50 per unit. The cost of placing an order with the supplier is $60. Annual holding costs are 25% of a feeder's value and the pet shop operates 52 weeks per year. Management chose a 390 unit lot size so that new orders can be placed less frequently.

What is the cost to the pet shop of not using the EOQ?

If the lot size were set at the EOQ, how often would orders be placed?

When should they be placed?

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