QUESTION 7 C=$0.40S=52000 O=$100 2×S×O C 2×52000×$100 040 26000000 5099.02 or 5 100 bearings Total cost5100/OxS Cx 52000 5100 100 0.40× 5100 Total cost,0o(|0×|+|cC 52000 10000 $100× 040× 10000 =$520+$2000 $2520August 2003 QUESTION 7 (a) C = $0.40 S = 52 000 O = $100 = 5 099.02 or 5100 bearings = 26 000 000 $0.40 2 52 000 $100 = C 2 S O EOQ =     (b) = $2 040 = $1020 + $1020 2 5100 + $0.40 5100 52 000 = $100 2 Q + C Q S Total cost 5100 = O                               = $2 520 = $520 + $2 000 2 10 000 + $0.40 10 000 52 000 = $100 2 Q + C Q S Total cost 1 0 000 = O                              