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A company decides to establish an EOQ for an item. The annual demand is 200,000 units. The ordering costs are $40 per order, and inventory-carrying
A company decides to establish an EOQ for an item. The annual demand is 200,000 units. The ordering costs are $40 per order, and inventory-carrying costs are $2 per unit per year. Calculate the following:
(a). The EOQ in units. (b). Number of orders per year. (c). Annual ordering cost, annual holding cost, and annual total cost
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