Question: Solve the following Economic Order Quantity problem using the following data: Demand = 32,000 per year Holding cost = $3 per unit per year Order

  1. Solve the following Economic Order Quantity problem using the following data:

Demand = 32,000 per year Holding cost = $3 per unit per year Order cost = $120

  1. What is the EOQ?
  2. How many orders need to be placed each year?
  3. What is the average inventory?
  4. What are total annual holding and ordering costs?

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