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Annual demand for a product is 40,000 units

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Annual demand for a product is 40,000 units. The product is used at a constant rate over the 365 days the company is open every year. The annual holding cost for the product is estimated to be $2.50 per unit and the cost of placing each order is $125.00. If the company orders according to the economic order quantity (EOQ) formula then the number of orders it would place annually would be

 

Paper#32887 | Written in 18-Jul-2015

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