In the basic EOQ model in Example 12.1, suppose that the fixed cost of ordering and the unit holding cost are both multiplied by the same factor f. (Remember that the unit holding cost is s + ic, so one way to do this is to multiply sand c by the factor f.) Use SolverTable to see what happens to the optimal order quantity and the corresponding annual fixed order cost and annual holding cost as f varies from 0.5 to 5 in increments of 0.25. Could you have discovered the same results algebraically, using Equations (12.2) through (12.4)?
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