Queens black is a popular input with an annual demand of 5 0 0 0 0 gallons, ordering cost of$ 5 0 per order, and
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Queens black is a popular input with an annual demand of gallons, ordering cost of$ per order, and holding cost of $ per unit per year; the econmoic orer quantity is Hence during the year, they used as the order quantity. An audit of the costs revealed that the true ordering cost was only $ and the true holding cost was $ per gallon per year. The correct order quantity would have been How much id they lose due to incorrect cost information during the year?
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