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Question 1 To illustrate the application for a service organization, assume that the following values apply for a part used in the repair of refrigerators
Question 1 To illustrate the application for a service organization, assume that the following values apply for a part used in the repair of refrigerators (the part is purchased from external suppliers): D = 10,000 units Q = 1,000 units p = $25 per order C = $2 per unit How much is TC (Total Cost)? Question 2 Some other order quantity may produce a lower total cost. The objective is to find the order quantity that minimizes the total cost. This order quantity is called the Economic Order Quantity (EOQ). How much is EO
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