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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Related Book For
Introduction To Materials Management
ISBN: 9780132337618
6th Edition
Authors: J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive
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