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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:
- The economic order quantity.
- The average number of computers on hand.
- The number of orders per year.
The annual total cost of ordering and carrying computers.
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