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Wall Company sells widgets at a constant rate of 100 units per month. The cost of ordering each batch of widgets is $500 and the

Wall Company sells widgets at a constant rate of 100 units per month. The cost of ordering each batch of widgets is $500 and the carrying cost per unit per month is $2. The company wants to maintain a safety stock of 50 units to avoid stockouts. The lead time for ordering and receiving a batch of widgets is 2 months.

Determine the EOQ and ROP for Wall Company.

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