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1 . A local Jeep dealer has to decide how many spare shock absorbers of a particular type to order to complete anticipated repairs. This

1. A local Jeep dealer has to decide how many spare shock absorbers of a particular type to order to complete anticipated repairs. This shock absorber has a demand of five units per month and costs $25 each. The carrying charge is 20% per year and the ordering cost is $15 per order.
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a. What is the EOQ for this item?

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