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Braneast Airlines uses 500 taillights per year. Each time an order for taillights is placed, an ordering cost of $5 is incurred. Each light costs
Braneast Airlines uses 500 taillights per year. Each time an order for taillights is placed, an ordering cost of $5 is incurred. Each light costs $40, and the holding cost is 8%/light/year. Assume that demand occurs at a constant rate and shortages are not allowed. What is the EOQ? How many orders will be placed each year? How much time will elapse between the placement of orders?
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