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The Toledo Mudhens, a minor league baseball team, breaks an average of eleven bats per week during a 42 week season. The team purchases it bats from a national supplier. The order cost is $295 and the annual holding cost is 25 percent of the purchase price.

What is the annual demand for bats?

If bats cost $30.00 each, what is the economic order quantity for bats?

What is the total annual cost associated with the EOQ quantity?

What impact will an decrease to $195 in the order cost have on the EOQ quantity?

Suppose the Mudhens break an average of 9 bats per week during the season, what impact will this have on the EOQ quantity? (Assume the order cost is $295)

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M91640507

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