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Your company has used the EOQ model to determine your order quantity of 3000 units for some time. Indeed, you have been ordering this amount
Your company has used the EOQ model to determine your order quantity of 3000 units for some time. Indeed, you have been ordering this amount for such a long time that you can't even remember all of the values of the model parameters you used to calculate it. Here is what you do know: The average annual holding cost corresponding to your order quantity is $72,000
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