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The Smiths company sells bed supplies. John Smith, the manager of the company, ordered 80 units at a time. The firm estimates that carrying cost
The Smiths company sells bed supplies. John Smith, the manager of the company, ordered 80 units at a time. The firm estimates that carrying cost is 40% of the $20 unit cost and the annual demand is about 300 per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal? Q' 2DS H O 8 30.5 48.6 O 75.7 O 85.3
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