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Ninja is a major manufacturer of Air Fryers. It purchases motors from Honda Corporation. Annual demand is 52,000 motors per year or 1,000 motors per

Ninja is a major manufacturer of Air Fryers. It purchases motors from Honda Corporation. Annual demand is 52,000 motors per year or 1,000 motors per week. The ordering cost is $360 per order. The annual carrying cost is $6.50 per motor. It currently takes 2 weeks to for the assembly plant to receive an order from Honda.

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  1. What is the optimal number of motors that Ninjas managers should order according to the EOQ model?
  2. At what point should managers reorder the motors, assuming that both demand and purchase-order lead time are known with certainty?

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