Amistad Inc manufactures custom golf clubs and orders 250,000 graphite shafts per year from its manufacturer. The CEO at Amistad wishes to know the optimal EOQ. The carrying cost is $0.45 per shaft per year. The order cost is $750 per order. What is the EOQ for Amistad? What are the total annual carrying costs? What are the total annual ordering costs? Round all of your answers to the nearest dollar or unit.
Correct Answer:
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