How much money does this save total their supplier offered, Operation Management

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How much money does this save total their supplier offered

The Frisco Roughriders wants to explore their inventory policy on purchasing hot dogs. They are currently using 200 per month and ordering 400 at a time.

Ordering cost $15

Holding cost $0.30

What is the total cost?

Using the EQ model, What would there total cost be?

How much money does this save total?

Their supplier offered another deal ordering 200 cases at fixed monthly order changing the order cost to $5, should they take the deal?

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Operation Management: How much money does this save total their supplier offered

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