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1 . A firm orders 2 5 0 0 units of a part each year from a supplier. The holding cost for this part is

1. A firm orders 2500 units of a part each year from a supplier. The holding cost for this part is
$50 per unit per year. The ordering cost is $100 per order. Based on this, find the following:
a. Determine economic order quantity.
b. Compute the total annual cost of carrying and ordering inventory, assuming the EOQ value is
used for quantity.
c. Compute the number of orders per year.

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