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Items purchased from a vender cost $20 each, and the forecast for the next year's demand is 1,000 units. The cost of placing an order
Items purchased from a vender cost $20 each, and the forecast for the next year's demand is 1,000 units. The cost of placing an order is estimated to be $5 every time an order is placed. Storage costs are $4 per unit per year. What quantity should be ordered to minimize inventory related costs? Satellite Emporium wishes to determine the best order size of their best selling satellite dish (model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $100 per year per unit, and he has estimated that each order costs $25 to place. Based on the EOQ model, how many units should Ray order each time he places an order
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