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please show work. thank you! will upvote. An internet food distributor uses 3000 packing crates each week to pack and ship its goods. The crates
please show work. thank you! will upvote.
An internet food distributor uses 3000 packing crates each week to pack and ship its goods. The crates are purchased at a cost of $10.25 each. The annual holding cost for a crate is estimated at 15% of the purchase price. It is estimated that the cost to place an order for the crates is $27.50. This business operates 52 weeks a year. 1) The purchasing manager currently orders crates every 4 weeks, how much is the total annual cost for holding and ordering inventory under this ordering method? 2) What would the EOQ be for the Crates? 3) How much would the total cost to hold and order inventory be reduced if the purchasing manager used the EOQ rather than ordering once a month Step by Step Solution
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