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A Local Distributor for a Belgian Chocolate Manufacturer Expects to Sell

Question 4

Multiple Choice

A local distributor for a Belgian chocolate manufacturer expects to sell 12,000 cases of chocolate truffles next year.The annual holding costs for the truffles are $16 per case per year.The ordering cost is $60 per order.The distributor operates 320 days a year.Then ______.


A) the EOQ is 200
B) the EOQ is 300
C) the EOQ is 400
D) the EOQ is 500

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