A company currently has an inventory item that is vital to its production process and costs $2,675.

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A company currently has an inventory item that is vital to its production process and costs $2,675. The company uses 1055 units of the item per year and order costs are $181 per order. If the carry costs are $87 per unit what is the EOQ?

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Contemporary Engineering Economics

ISBN: 978-0136118480

5th edition

Authors: Chan S. Park

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Posted Date: Feb 20, 2024 08:09 AM

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A company currently has an inventory item that is vital to its production process and costs $2,675.

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Expert Answer:

To calculate the Economic Order Quantity EOQ we can use the following formula EOQ sqrt2 Annual ... View the full answer

Contemporary Engineering Economics

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