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