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Walmart manages its inventory using the Economic Order Quantity (EOQ) model. In April 2041, the following data is provided: Annual Demand: 1,000,000 units Order Cost:
Walmart manages its inventory using the Economic Order Quantity (EOQ) model. In April 2041, the following data is provided:
- Annual Demand: 1,000,000 units
- Order Cost: $500 per order
- Holding Cost per Unit: $2
Requirements:
- Calculate the EOQ.
- Determine the total inventory cost.
- Prepare a report on inventory management efficiency.
- Recommend strategies to optimize inventory levels.
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Financial Accounting
Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac
14th edition
1305088433, 978-1305088436
