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Demand for a popular athletic shoe is nearly constant at 800 pairs per week for a regional division of a national retailer. The cost per pair is $54. It costs $72 to place an order, and annual holding costs are charged at 22% of the cost per unit. The lead time is two weeks.
a. What is the EOQ?
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Erdington operated a toy store also carried merchandise from both domestic as well as foreign manufacturers. As holiday season approached, he found that he could reduce his costs by importing a stuffed toy from a developing country.
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