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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
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 lead
time is
days In the past Mark ordered
units each time he placed an order. He is now considering EOQ to make inventory ordering decisions. What would be the difference in total holding cost be for the year
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