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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 However, an inventory analysis suggested using EOQ. How much would mark save if he uses EOQ? Assume there are no disocunts offered, so the total purchase cost is irrelevant in this case
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