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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 3600 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. In the past Mark ordered 200 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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