2. A firm's estimated demand for a material during the next year is 2,500 units. Acquisition costs...
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2. A firm's estimated demand for a material during the next year is 2,500 units. Acquisition costs are 400 per order and carrying cost is *50 per unit. The safety stock is set at 25 per cent of the EOQ. The daily usage is 10 units and lead time is 10 days. Determine
(a) the EOQ,
(b) the safety stock, and
(c) the reorder point.
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