The Toledo Mudhens, a minor league baseball team, breaks an average of seven bats per week during a 38 week season. The team purchases it bats from a national supplier. The order cost is $185 and the annual holding cost is 24 percent of the purchase price.
What is the annual demand for bats?
If bats cost $25.00 each, what is the economic order quantity for bats?
What is the total annual cost associated with the EOQ quantity?
What impact will an increase to $295 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 $175.