How many fewer units should he now order each time he


Tom Bergman, owner and operator of the Earplug Superstore, is reviewing the costs associated with the store’s best-selling hearing aid, the BZ15. The data available to Mr. Bergman concerning this device follow. Demand = 25 units/week Order cost = $3/order Holding cos = $1.50/unit/year The Earplug Superstore operates 52 weeks a year. Using EOQ model Tom cuts the ordering cost in half by implementing a streamlined processing system. How many fewer units should he now order each time he places an order?

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Operation Management: How many fewer units should he now order each time he
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