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The monthly demand for a part is 1,500 units. The order cost is $285 per order, the holding cost is $56 per unit per year
The monthly demand for a part is 1,500 units. The order cost is $285 per order, the holding cost is $56 per unit per year and the part cost is $850 per unit. The firm operates twelve months per year. Compute the (a) EOQ, (b) annual holding cost, (c) annual order cost, and (d) annual total inventory cost.
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