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Traci, the new inventory manager at Magyar Golf Supplies, is considering using the economic order quantity (EOQ) for controlling inventory. She wants to apply the
Traci, the new inventory manager at Magyar Golf Supplies, is considering using the economic order quantity (EOQ) for controlling inventory. She wants to apply the EOQ to a sample product, the Super-Z Wedge. The Super-Z Wedge has an average demand of 60 units/week with an ordering cost of $300/order. The cost of carrying a Super-Z Wedge in inventory is $30.00/unit/year. Assume 50 work weeks in a year. What would be the difference in annual ordering cost if an order quantity of 400 is used instead of the EOQ. Note: calculate the difference as the annual ordering cost with Q = 400 the annual ordering cost with EO
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