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What Is the Economic Order Quantity for an Automobile Dealer

Question 18

Multiple Choice

What is the economic order quantity for an automobile dealer selling 2,000 cars per year, at a cost of $750 per order, and a carrying cost of $300 per automobile?


A) 40 cars
B) 71 cars
C) 100 cars
D) 126 cars EOQ =
=

Correct Answer:

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