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Osprey Corp. sells widgets. Part No. 4361 is required to make the widgets. Based on the suggestion of the salesperson that supplies Part No. 4361
Osprey Corp. sells widgets. Part No. 4361 is required to make the widgets. Based on the suggestion of the salesperson that supplies Part No. 4361 to Osprey, Osprey has been ordering 130 units at a time. However, you have just started an accounting internship at the company and you suggest the company use the Economic Order Quantity model to determine how many units of Part No. 4361 to order at a time. Additional information follows: If Osprey follows the EOQ model, what is the optimal order size for Part No. 4361? Question 5 Following the EOQ model, how many orders will be placed each year? Question 6 Following the EOQ model, how much will Osprey spend annually on carrying costs? Determine the annual cost savings if Osprey changes from an order size of 130 units to the optimal order quantity determined using the EOQ model. cannot be determined from the information given approximately $37 approximately $5,383 approximately $480 the correct amount is not among the available answer choices Question 8 What is Osprey's reorder point in units? (round your answer to the nearest whole number)
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