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Eco Organic sells a special product. Supplier charges a fixed cost of $200 for each order, regardless of the number of the items ordered. Eco
Eco Organic sells a special product. Supplier charges a fixed cost of $200 for each order, regardless of the number of the items ordered. Eco Organic calculates holding cost based on an annual interest rate of 20%. The monthly demand of the item is 600 units and the purchasing price of an item is $10.
Find the economic order quantity and average annual cost under this policy.
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