Determine the EOQ by increasing significantly the holding cost between ten to twenty times the amount used by the textbook. Present the formula and results of the new EOQ. You will keep the original demand (9,600 units) and ordering costs, S ($75) the same
Determine a second EOQ by decreasing the ordering costs to one tenth (1/10) or lower and keeping the original demand and holding costs, H ($16) the same.
Determine a third EOQ by increasing the holding cost to the level you selected and decreasing the ordering cost at the same time based on the last scenario. You keep the demand the same
Study the three scenarios and write a paragraph with your interpretation of results. What is the meaning, based on current business trends and technology, to have increasing holding costs and decreasing ordering costs? What is happening to the EOQ?
Submit one file with the three formulas and results and your concluding thoughts. As a reference, find attached a similar analysis done for a different EOQ case.