The XYZ Ltd. carries a wide assortment of items for its customers. One of its popular...
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The XYZ Ltd. carries a wide assortment of items for its customers. One of its popular items has annual demand of 10000 units. Ordering cost per order is found to be \S. 10. The carrying cost of average inventory is 20% per year and the cost per unit is \$1.00. Using trial and error method determine the optimal economic quantity and make your recommendations. The XYZ Ltd. carries a wide assortment of items for its customers. One of its popular items has annual demand of 10000 units. Ordering cost per order is found to be \S. 10. The carrying cost of average inventory is 20% per year and the cost per unit is \$1.00. Using trial and error method determine the optimal economic quantity and make your recommendations.
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Answer The optimal economic quantity is 2000 units The ... View the full answer
Related Book For
Principles of Risk Management and Insurance
ISBN: 978-0132992916
12th edition
Authors: George E. Rejda, Michael McNamara
Posted Date:
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