The ceo of famous butter made cookies does not like your


The CEO of Famous Butter Made Cookies (FBMC) does not like your fancy analysis and thinks that more cookies are better. So, the new policy is to bake a lot of cookies at once and then send them out to vendors for eventual sale. The new predicted demand for a one month (30 day) planning horizon is 120,000 cookies. Though the previous holding cost was $0.25 per cookie per day, your R&D department came up with a non-toxic preservative that keeps the cookies fresher for longer. So, your new holding cost has dropped to just $0.05 per cookie per day. The ordering cost is still at $12,500 per order. Find the optimal EOQ quantity of cookies to order.

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