Question: Problem 3. Flechtner' s Bar & Grill uses a product purchased from a distant supplier. The owners believe the assumptions of the EOQ model are

Problem 3. Flechtner' s Bar & Grill uses a product purchased from a distant supplier. The owners believe the assumptions of the EOQ model are met reasonably well. Minimization of inventory costs are their objective. Relevant data, from the files of the grill, are: Annual demand = 2400 units Ordering cost = $12 per order Holding cost = $4 per unit per year Matthew needs answers to the following questions:

How many should they order at one time?

How many times per year will he replenish inventory of this material?

What will be the total annual inventory costs associated with this product?

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