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Calculate the economic order quantity (EOQ) for a company that sells 25,000 units of a product annually, with a fixed cost per order of $300,
Calculate the economic order quantity (EOQ) for a company that sells 25,000 units of a product annually, with a fixed cost per order of $300, a carrying cost per unit of $2, and an annual demand of 25,000 units. Discuss how variations in ordering and carrying costs can impact the EOQ and inventory management decisions. Explore strategies for optimizing inventory levels and reducing total inventory costs.
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