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The Cost of a Widget Is $5,and the Carrying Rate

Question 14

Multiple Choice

The cost of a widget is $5,and the carrying rate is 40%;cost of processing an order is $25,annual demand is for 400 widgets,and supply and usage patterns are stable.What is the economic order quantity (EOQ) ?


A) 5
B) 20
C) 25
D) 100
E) 200

Correct Answer:

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