Question: ABC Hardware Store regularly stocks a popular power tool with a steady demand of 5 0 0 units per month. The cost of placing an

ABC Hardware Store regularly stocks a popular power tool with a steady demand of 500 units per month. The cost of placing an order is $80, and the holding cost per unit per year is $6. The store initially places orders for 500 units at a time. The lead time for replenishing the inventory is one month.
What will be the savings if ABC starts following a EOQ model.

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