Demand for Number 2 pencils is 60 pencils per week. Fixed cost per order is $12. Inventory
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Question:
Demand for Number 2 pencils is 60 pencils per week. Fixed cost per order is $12. Inventory holding cost is $0.05 per pencil per year.
What's the economic order quantity (EOQ)?
What's the total cost (TC) associated with the calculated EOQ?
What's the number of orders per year?
What's the length of the order cycle?
Related Book For
Essentials of Business Analytics
ISBN: 978-1285187273
1st edition
Authors: Jeffrey Camm, James Cochran, Michael Fry, Jeffrey Ohlmann, David Anderson, Dennis Sweeney, Thomas Williams
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