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You're a buyer for Quality Kitchen Appliances. The store has a demand for 63 toaster ovens per month. The cost of each toaster is $47.00.
You're a buyer for Quality Kitchen Appliances. The store has a demand for 63 toaster ovens per month. The cost of each toaster is $47.00. The ordering cost is $32 per order. The holding cost is 20% of the cost of the oven per unit per year. a. What is the optimal ordering quantity? b. How many orders will be placed per year? c. What is the total annual cost, including the cost of the toasters? $ d. If the holding cost increases to 25% of the unit cost of the oven, what is the new EOQ? , and the new total annual cost? \$ e. Suppose the store manager purchases 90 ovens per order instead of the EOQ. Based on the 90 -unit order size, what is the firm's total annual cost? (Note: holding cost remains at 25\%) $
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