Question

Mynah Fitzgibbon, of L.A. Plumbing, uses 1,200 of a certain spare part that costs $25 for each order, with an annual holding cost of $24.
(a) Calculate the total cost for order sizes of 25, 40, 50, 60, and 100.
(b) Identify the economic order quantity and consider the implications for making an error in calculating economic order quantity.



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  • CreatedJuly 23, 2013
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