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Mark Achin sells 3 , 6 0 0 electric motors each year. The cost of these is $ 2 0 0 each, and demand is
Mark Achin sells electric motors each year. The cost of these is $ each, and demand is constant throughout the year. The cost of placing an order is $ while the holding cost is $ per unit per year. There are working days per year and the leadtime is days. At the moment Mark orders units each time he places an order. He is now considering using EOQ to make inventory ordering decisions. What would the difference in total ordering cost be for the year?
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