Question: - 3 2 Morgan Arthur has spent the past few weeks determining inventory costs for Armstrong, a toy manufacturer located near Cincinnati, Ohio. She knows
Morgan Arthur has spent the past few weeks determining inventory costs for Armstrong, a toy manufacturer located near Cincinnati, Ohio. She knows that annual demand will be units per year and that the carrying cost will be $ per unit per year. The ordering cost, on the other hand, can vary from $ per order to $ per order. During the past working days, Morgan has observed the following frequency distribution for the ordering cost:
Ordering Cost Frequency
$
$
$
$
$
$
Morgans boss would like Morgan to determine an EOQ value for each possible ordering cost and to determine an EOQ value for the expected ordering cost.
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