Annual ordering cost and the annual holding cost

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Suppose that instead of ordering the amount Q specified by the EOQ formula, the order quantity 0.8Q is used. Show that the sum of the annual ordering cost and the annual holding cost increases by 2.5%.

Reference no: EM131106564

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Annual ordering cost and the annual holding cost : Suppose that instead of ordering the amount Q specified by the EOQ formula, the order quantity 0.8Q is used. Show that the sum of the annual ordering cost and the annual holding cost increases by 2.5%.
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