Chapter $12$ Inventory Management $($i$)$

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Problem $12-6($Algo$)$

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A produce distributor uses $788$ packing crates a month, which it purchases at a cost of $$11$ each. The manager has assigned an annual

points carrying cost of $37$ percent of the purchase price per crate. Ordering costs are $$29.$ Currently the manager orders once a month.

How much could the firm save annually in ordering and carrying costs by using the EOQ? $($Round intermediate calculations and final

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Savings

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