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A company decides to establish an EOQ for an item. The annual demand is 5 0 0 , 0 0 0 units, each costing $

A company decides to establish an EOQ for an item. The annual demand is 500,000 units, each
costing $17, ordering costs are $40 per order, and inventory carrying costs are 18%. Calculate
the following:
a. The EOQ in units
b. Number of orders per year
c. Cost of ordering, cost of carrying inventory, and total cost

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