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A games shop has an annual demand of 7 5 , 0 0 0 units for Martian Travel Game. Placing an order and organising shipment
A games shop has an annual demand of units for Martian Travel Game.
Placing an order and organising shipment incurs a cost of $ per order. The Annual
carrying cost is $ per game per year.
Determine:
a The economic order quantity.
b The average number of Martian Travel Games on hand
c The number of orders per year
d The annual total cost of ordering and carrying Martian Travel Games.
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