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?

the economic order quantity (EOQ) is the order quantity that should minimize total inventory costs which include both order costs and carrying inventory costs.

the formula for calculating EOQ is:

EOQ = √(2DS / H)

D = annual demand in units
S = order cost per purchase order
H = holding cost per unit per year

If D doubled, that means that EOQ will increase by 41% = √2 - 1 = 0.41 or 41% ≈ 40%

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?

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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?