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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 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. The cost of placing an order is $40, while the holding cost is $20 per unit per year. There are 360 working days per year and the lead-time is 5 days. At the moment Mark orders 200 units each time he places an order. However an inventory analysis suggested using E)Q. How much would Mark save if he usus EOQ? Assume there are no discounts offered so the total purchase cost is irrelevant in this case.

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