A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each

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A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $8, ordering costs are $32 per order, and inventory-carrying costs are 20%. Calculate the following:

a. The EOQ in units.

b. Number of orders per year.

c. Cost of ordering, cost of carrying inventory, and total cost.

LO.1

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Introduction To Materials Management

ISBN: 9780132337618

6th Edition

Authors: J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive

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Question Posted: Jul 22, 2024 06:00 AM

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A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each

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Introduction To Materials Management

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