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Part A: Use the following information to calculate OC . Part B: Explain why the answer you provided for Part A is correct. Demand 2

Part A: Use the following information to calculate OC

.

Part B: Explain why the answer you provided for Part A is correct.

Demand

200

units per year

Carrying cost

10 %

per year

Cost per unit $

50

EOQ

40

units

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