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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 However an inventory analysis suggested using E
O
Q
How much would Mark save if he uses EOQ?
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