Question: Sales = 8 cases per week; ordering cost = $ 1 0 per order; Carrying charge = $ 2 0 per year; Item cost =

Sales =8 cases per week; ordering cost = $10 per order; Carrying charge = $20 per year; Item cost =$80 per case. a. How many cases should be ordered at a time? b. How often will tea be ordered? c. What is the annual cost of ordering and carrying tea? d. What factors might cause the firm to order a larger or smaller amount than the EOQ?

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