A manufacturing firm located in Calgary produces an item in a three-month time supply. An analyst has obtained the following estimates of characteristics of the item. D = 4000 units/year A = $5 c = $4 per 100 units h = $0.25/unit/year Assume the production rate is much larger than D, answer the follows: What is the economic order quantity of the item What is the time between consecutive replenishment of the item when the EOQ is used? Must show all work.

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3month rule Q 1000 Cost of 3month ... View the full answer