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IBM manages its inventory using the EOQ model. In March 2044, the following data is provided: Annual Demand: 50,000 units Order Cost: $200 per order
IBM manages its inventory using the EOQ model. In March 2044, the following data is provided:
- Annual Demand: 50,000 units
- Order Cost: $200 per order
- Holding Cost per Unit: $5
Requirements:
- Calculate the Economic Order Quantity (EOQ).
- Determine the total inventory cost.
- Prepare an inventory management report.
- Recommend strategies to optimize inventory levels.
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
