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Cheryl Druehl has asked you to help her determine the best ordering policy for a new product. The demand for the new product has been

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Cheryl Druehl has asked you to help her determine the best ordering policy for a new product. The demand for the new product has been forecasted to be about 1,000 units annually. To help you get a handle on the carrying and ordering costs, Cheryl has given you the list of last year's costs. She thought that these costs might be appropriate for the new product Cost Factor Taxes for the warehouse Receiving and incoming inspection New product development Acct. dept. costs to pay invoices Inventory insurance Product advertising Spoilage Sending purchasing orders Cost ($) Cost ($ Cost Factor Warehouse supplies Research and development Purchasing salaries & wages Warehouse salaries & wages Pilferage of inventory Purchase order supplies Inventory obsolescence Purchasing dept. overhead 2,000 1,500 2,500 500 280 2,750 30,000 12,800 800 600 800 500 750 300 800 1,000 She also told you that these data were compiled for 10,000 inveentory items that were carried or held during the year. You have also determined that 400 orders were placed last year. Your job as a new operations management graduate is to help Cheryl determine the economic order quantity for the new product EOQ units (round your response to the nearest whole number)

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