An auto manufacturer uses

Reference no: EM13250768

An auto manufacturer uses 500 tons of steel per day. The company pays $1100 per ton of steel purchased, and each order incurs a fixed cost of $2250. The holding cost is $275 per ton of steel per year. Using the EOQ model, calculate the optimal order quantity, reorder interval, and average cost per year.

Reference no: EM13250768

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