Suppose That the Annual EOQ Cost (Ordering Plus Inventory Holding)

question 130

Short Answer

Suppose that the annual EOQ cost (ordering plus inventory holding) for a product stored in a warehouse is $10,000. What would the total company EOQ cost be if the firm decided to equally allocate the demand among five warehouses instead of one?

---

Definitions:

Carboxyl

A carboxyl group is a functional group consisting of a carbon atom double-bonded to an oxygen atom and also bonded to a hydroxyl group, symbolized as -COOH.

Sulfhydryl

A functional group consisting of a sulfur atom bonded to a hydrogen atom (-SH), important in the structure and function of proteins.

ATP

Adenosine triphosphate, a molecule that carries energy within cells for metabolism.

Energy Currency

ATP (adenosine triphosphate), a molecule that stores and transfers energy within cells, making it possible for cells to perform their functions.