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Calculate the economic order quantity

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Question - Tygre Limited expects to use 108,000 kg of steel in production during its next planning period. Each time a new shipment of steel is ordered, costs of $480 are incurred. The cost of storing one kg of steel is $1.50 per month and Tygre Limited has a planning period of 9 months. Calculate the economic order quantity in kg.

Reference no: EM132782368

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