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Bumek [7]
3 years ago
8

For the EOQ model, which of the following relationships is incorrect?

Mathematics
1 answer:
Alborosie3 years ago
3 0

Answer: As the order quantity increases, annual ordering cost increases

Step-by-step explanation:

The Economic Order Quantity (EOQ) is simply referred to as the amount of units that should be added by a company to its inventory with each order in order to minimize total inventory costs such as order costs, holding costs, and shortage costs.

The incorrect option is that "as the order quantity increases, annual ordering cost increases". It should be noted that ordering costs are simply the expenses that are incurred in order for an order to be created and processed to a supplier. It should be noted that as the ordering quantity increases, it doesn't mean that the annual ordering costs also increase.

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You manage an ice cream factory that makes two flavors: Creamy Vanilla and Continental Mocha. Into each quart of Creamy Vanilla
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Answer:

You should make 250 quarts of Creamy Vanilla and 200 of Continental Mocha to use up all the eggs and cream.

Step-by-step explanation:

This problem can be solved by a first order equation

I am going to call x the number of quarts of Creamy Vanilla and y the number of quarts of Continental Mocha.

The problem states that each quart of Creamy Vanilla uses 2 eggs and each quart of Continental Mocha uses 1 egg. There are 700 eggs in stock, so:

2x + y = 700.

The problem also states that each quart of Creamy Vanilla uses 3 cups of cream and that each quart of Continental Mocha uses 3 cups of cream. There are 1350 cups of cream in stock, so:

3x + 3y = 1350

Now we have to solve the following system of equations

1) 2x + y = 700

2) 3x + 3y = 1350

I am going to write y as function of x in 1) and replace it in 2)

y = 700 - 2x

3x + 3(700 - 2x) = 1350

3x + 2100 - 6x = 1350

-3x = -750 *(-1)

3x = 750

x = 250

You should make 250 quarts of Creamy Vanilla

Now, replace it in 1)

y = 700 - 2x

y = 700 - 2(250)

y = 700 - 500

y = 200.

You should make 200 quarts of Continental Mocha

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Step-by-step explanation:

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