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    Business
  3. Study Set
    Introduction to Materials Management Study Set 1
  4. Exam
    Exam 15: Just-In-Time Manufacturing and Lean Production
  5. Question
    A Company Decides to Establish and EOQ for an Item
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A Company Decides to Establish and EOQ for an Item

Question 2

Question 2

Short Answer

A company decides to establish and EOQ for an item. The annual demand is 400,000 units each costing $8 to run, setup costs are $32 , and inventory carrying costs are 20%. Calculate the EOQ in units.

Correct Answer:

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