Question: IBM manages its inventory using the EOQ model. In March 2044, the following data is provided: Annual Demand: 50,000 units Order Cost: $200 per order

IBM manages its inventory using the EOQ model. In March 2044, the following data is provided:

  • Annual Demand: 50,000 units
  • Order Cost: $200 per order
  • Holding Cost per Unit: $5

Requirements:

  • Calculate the Economic Order Quantity (EOQ).
  • Determine the total inventory cost.
  • Prepare an inventory management report.
  • Recommend strategies to optimize inventory levels.

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