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Compute the economic order quantity for the chips

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Question

Wonderland Plant manufactures computer chips. Expected demand for these chips in March 2018 is 52,000 units. Wonderland estimates the cost per purchase order to be 25$. The monthly holding cost for one chip is 5c

Compute the economic order quantity for the chips

Compute the number of orders in March 2018

Reference no: EM132368973

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