A company wishes to establish an EOQ for an item for which the annual demand is $800,000,

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A company wishes to establish an EOQ for an item for which the annual demand is

$800,000, the ordering cost is $32, and the cost of carrying inventory is 20%. Calculate the following:

a. The EOQ in dollars.

b. Number of orders per year.

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

d. Compare your answers to those in problem 10.3.

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 wishes to establish an EOQ for an item for which the annual demand is $800,000,

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Introduction To Materials Management

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