Question: 2 Farm Friends, is experiencing some inventory control problems. The manager, currently orders 50,000 units once a year to handle the annual demand of 50,000
2 Farm Friends, is experiencing some inventory control problems. The manager, currently orders 50,000 units once a year to handle the annual demand of 50,000 units. Each order costs $10 and each unit costs $1.00 to carry. The company maintains a safety stock of 1000 units. A) What is the current total annual inventory cost? B) Calculate the economic ordering quantity (EOC)
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