1) The annual demand for a stock item is 2500 units. The cost of placing an order is $80 and the cost of holding an item in stock for one year is $15. Q. What is the economic order quantity, to the nearest units? a) 31 units b) 115 units c) 163 units d) 26,667 units
2) A company uses the EOQ model to establish reorder quantities. The following information relates to the forthcoming period. Order costs = $25 per order Holding costs = $4/unit Annual demand = 20000 units Purchase price = 340 per unit EOQ = 500 units No safety inventory are held
Q. What is the total annual cost of inventory? a)
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