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Hamid Company consumes inventory of 100000 units of components per year. The carrying cost per unit is RO 3.50. The fixed order cost is RO
Hamid Company consumes inventory of 100000 units of components per year. The carrying cost per unit is RO 3.50. The fixed order cost is RO 20 per order. The production planning is 365-day year. The delivery time is three days.
a. Calculate and interpret the Economic Order Quantity (EOQ).
b. At what inventory level should Hamid Company place another order. Interpret.
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
