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Calculate the annual inventory carrying cost

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Problem 1: Benny, the owner of Benny's warehouse, decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $8, ordering costs are $32 per order, and inventory-carrying costs are 20%. Calculate the following.

Show calculations and formula as well.

A The EOQ in units
B # of orders placed per year
C Annual inventory carrying cost
D Annual ordering cost
E Total Annual cost

Reference no: EM132685241

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