Question

Matthew Liotine's Dream Store sells water beds and assorted supplies. His best-selling bed has an annual demand of 390 units. Ordecing cost is 539 ; holding cost is $ 5 \) per unt per year. a) To

Answer 1

It appears that some of the information in your question is missing. Specifically, the order cost value is stated as "539" which may have been intended to be $539. However, the demand for the best-selling bed is mentioned as 390 units, but there is no information provided regarding the planned or actual quantity ordered or made.

To calculate the Economic Order Quantity (EOQ), we need the annual demand (D), order cost (S), and holding cost per unit per year (H). The EOQ formula is:

EOQ = √((2 * D * S) / H)

Given:

Demand (D) = 390 units (annual demand)

Order Cost (S) = $539

Holding Cost (H) = $5 per unit per year

EOQ = √((2 * 390 * 539) / 5)

Now, we need the actual quantity ordered or made during the year to compute the EOQ correctly. Please provide the missing information, and I'll be happy to assist you further with the calculation.