Question

The mickey and mouse cat food factory runs an aggressive marketing campaign and much to the? delight, orders surge to twice their previous level. if their operations manager uses an eoq? policy, what is the impact on the order? quantity?

Answer 1

The impact on the order of the quantity will be able to get a 40% higher. It is because if the mickey and mouse cat food factory runs the marketing campaign to the delight order surge twice to their previous level and their operation manager uses the EOQ or the Economic Order Quantity, it is able to minimize the ordering cost and the total of the holding costs, producing an order quantity of 40% higher.