Follows the economic order quantity model

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1) ABC Company sells 4,526 chairs a year at an average price per chair of $144. The carrying cost per unit is $32.08. The company orders 462 chairs at a time and has a fixed order cost of $84.5 per order. The chairs are sold out before they are restocked. What are the total shortage costs? Enter your answer rounded off to two decimal points. Do not enter comma or $ in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

2) ABC Company sells 4,354 chairs a year at an average price per chair of $172. The carrying cost per unit is $57.3. The company orders 568 chairs at a time and has a fixed order cost of $51 per order. The chairs are sold out before they are restocked. How many orders will company place if it follows the economic order quantity model? Enter your answer rounded off to two decimal points. Do not enter comma in the answer box. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

Reference no: EM131981775

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