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Company uses 8 0 0 units of a product per year on a continuous basis. The product has carrying costs of $ 5 0 per
Company uses units of a product per year on a continuous basis. The product has carrying costs of $ per unit per year and order costs of $ per order. It takes days to receive a shipment after an order is placed and the firm requires a safety stock of days usage in inventory.
A Calculate the economic order quantity EOQ
B Determine the reorder point. Assume a day year.
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