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Whаt type оf cоurse is this?
Evаluаte (-5)-3
Cоcа‑Cоlа’s lоgistics teаm is revising its ordering policy for a popular 12‑pack of 2‑liter bottles (wholesale cost ≈ $3.50 per pack). Annual demand for the pack is approximately 1,200,000 units. The company uses the classic Economic Order Quantity (EOQ) model. The carrying cost (inventory‑holding charge) is 20 % of the unit cost and remains unchanged. A new packaging‑line upgrade has just been installed in the distribution center. Specifically, Coca‑Cola investment now requires an extra 45‑minute machine start‑up and a one‑time calibration fee, raising the effective setup cost by 100%. The upgrade is expected to lower unit production costs in the long run, so the company is willing to accept the higher set‑up expense for a smaller number of production runs. Under these conditions, by what percentage will Coca‑Cola’s target inventory quantity (the EOQ) change when the setup cost is doubled?