Question: 2. Managing inventory costs is an important activity for supply chain managers as major portion of overall costs of operations is involved in inventory. A

2. Managing inventory costs is an important activity for supply chain managers as major portion of overall costs of operations is involved in inventory. A Company's annual demand for one particular product is 15000 units. Its ordering cost is 175 AED per order and its holding cost is 15% of ordering cost. The company purchases the products at 875 AED per item. Apply EOQ concept to calculate the total cost of inventory. Provide your solutions on how the company can reduce its total inventory cost.

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