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A purchasing manager receives the following information from the accounting department: Cost of placing an order = $180 Unit cost = $75 Annual inventory holding

A purchasing manager receives the following information from the accounting department:

Cost of placing an order = $180

Unit cost = $75

Annual inventory holding costs = 20%

Annual Demand = 15,500 units

calculate the following:

a. EOQ

b. avg number of orders

c. total annual inventory costs

d. If 50 orders are placed per year, what is the total annual inventory cost?

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