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A manufacturer buys plastic bottles from a supplier. The annual demand is 72,000 boxes and is uniformly distributed. The boxes cost $2 each. The estimated
A manufacturer buys plastic bottles from a supplier. The annual demand is 72,000 boxes and is uniformly distributed. The boxes cost $2 each. The estimated order cost is $10, and the carrying cost rate is 40% per year. What is the EOQ and what is the annual order and carrying cost?
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