Question: PROBLEM: Suppose we have an EOQ inventory system with the following characteristics: unit carrying cost is $18 per unit per year. daily demand is 25

PROBLEM:

Suppose we have an EOQ inventory system with the following characteristics:

  • unit carrying cost is $18 per unit per year.
  • daily demand is 25 units per day.
  • 300 operating days per year.

If the number of orders is 12 orders per year, what is the average inventory level?

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