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4 0 ) Taizhou Products uses 8 0 0 units of a product per year on a continuous basis. The product has carrying costs of
Taizhou Products uses units of a product per year on a continuous basis. The product has carrying costs of $ per unit per year and order costs of $ per order. It takes days to receive a shipment after an order is placed and the firm requires a safety stock of days usage in inventory.
a Calculate the economic order quantity EOQ
b Determine the reorder point. Assume a day year.
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