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An electronics shop has an annual demand of 250,000 units for a hot selling desktop computer. Preparing an order and receiving a shipment of computers

An electronics shop has an annual demand of 250,000 units for a hot selling desktop computer. Preparing an order and receiving a shipment of computers involves a cost of $25 per order. The Annual carrying cost is $8 per computer per year.

Determine:

  1. The economic order quantity.

  1. The average number of computers on hand.

  1. The number of orders per year.

The annual total cost of ordering and carrying computers.

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