Respuesta :
Answer:
D. Decreases from 30 to 28.5 bags
Explanation:
The computation of the economic order quantity is shown below:
= [tex]\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
where,
Carrying cost is $80 × 40% = $32
Annual demand = 60 bags × 12 months = 720 bag
And, the ordering cost is $20 per order
Now put these values to the above formula
So, the value would equal to
= [tex]\sqrt{\frac{2\times \text{720}\times \text{\$20}}{\text{\$32}}}[/tex]
= 30 bags
Now the demand is decreased by 10% So, the annual demand would be
= (60 - 6) × 12 months
= 54 bags × 12 months
= 648 bags
The other things will remain the same
Now put these values to the above formula
So, the value would equal to
= [tex]\sqrt{\frac{2\times \text{648}\times \text{\$20}}{\text{\$32}}}[/tex]
= 28.46 bags
