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Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
Edition 8ISBN: 978-0134156323Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
Edition 8ISBN: 978-0134156323 Exercise 3
A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $9, ordering costs are $35 per order, and inventory carrying costs are 22%. Calculate the following:
a. The EOQ in units.
b. Number of orders per year.
c. Cost of ordering, cost of carrying inventory, and total cost.
a. The EOQ in units.
b. Number of orders per year.
c. Cost of ordering, cost of carrying inventory, and total cost.
Explanation
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The optimum quantity that should be orde...
Introduction to Materials Management 8th Edition by Steve Chapman ,Tony Arnold ,Ann Gatewood ,Lloyd Clive
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