What are the optimal eoq and eot using average demand, Microeconomics

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What are the optimal eoq and eot using average demand

Problem

Timed requirements for an automobile engine are (400, 375, 420, 275, 390, 325). These serve as demand for the production process. Setup cost is $420, and holding cost is $1.50 per unit per-period.

• What are the optimal EOQ and EOT using average demand?

• EOQ has strong assumptions not normally met in practice. Which two assumptions are not met in this problem?

• How does EOQ change if EOT is rounded to the nearest integer?

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Microeconomics: What are the optimal eoq and eot using average demand

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Microeconomics: What are the optimal eoq and eot using average demand

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