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The cost to place an order is $ 4 0 . Annual demand is 3 , 0 0 0 units. Holding ( or carrying )

The cost to place an order is $40. Annual demand is 3,000 units.
Holding (or carrying) cost is 25 percent of the material price. What is
the economic order quantity to buy each time, and its total cost?
What is your decision, how many units do you think is optimum to
order and why?

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