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1. Write-EZ ballpoint pens at the campus bookstore are sold at a fairly steady rate of 75 per week. The ballpoint pens cost $1.50 each.
1. Write-EZ ballpoint pens at the campus bookstore are sold at a fairly steady rate of 75 per week. The ballpoint pens cost $1.50 each. Initiating an order costs the bookstore $20.00 and holding costs are based on an annual interest rate of 20%. (a) Determine the economic order quantity for the ballpoint pens and the frequency of ordering. (b) If the bookstore wants to keep the number of orders per year below 4 what should the order size be? (c) What is the range of values for the fixed setup cost, A, for which the EOQ you found in part (a) would be preferable (in terms of setup and holding costs) to the order quantity you found in part (b)
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