QUESTION 9 C=$750 per drum($0×0.15 s=2 500(100 gallon drums) +S250 per drum($50×005) p=$50 per 100 gallon drum S10.00 per drum 0=$10 per order EOQ 2×2500×$10 $10 70.71or 71 drums C=$6750 per drum($450×0.15) S=250(1 000 gallon drums) +S2250 per drum(S450×0.05) p=$450 per 1 000 gallon drum 0=$10 per ord 2×S×O C 2×250×$10 7.45 or 8 drunAugust 2003 QUESTION 9 (a) C = $ 7.50 per drum ($50 × 0.15) S = 2 500 (100 gallon drums) + $ 2.50 per drum ($50 × 0.05) p = $50 per 100 gallon drum $10.00 per drum O = $10 per order = 70.71or 71drums = 5 000 $10 2 2 500 $10 = C 2 S O EOQ =     (b) C = $67.50 per drum ($450 × 0.15) S = 250 (1 000 gallon drums) + $22.50 per drum ($450 × 0.05) p = $450 per 1 000 gallon drum $90.00 per drum O = $10 per order = 7.45 or 8 drums = 55.55 $90 2 250 $10 = C 2 S O EOQ =    