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If Sales Are Projected to Be 10,000 Units and the Order

Question 191

Short Answer

If sales are projected to be 10,000 units and the order cost/order is $50 and the carrying cost/unit is $300, and average inventory levels are at 100, using the EOQ Model:
a. Calculate the optimal quantity to be ordered.
b. What is the total inventory cost?

Correct Answer:

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a. 58 units should b...

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