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Question :
Buffalo Falls Ltd manufactures among other things, glass table tops. It uses a just-in-time system of production for its table tops. Thus it orders the glass used in production in bulk. The glass takes up a lot of space in the company's warehouse, and often is damaged through storage. Accordingly Buffalo Falls has decided to trial a Just-in-Time (JIT) purchasing system. The subsequent data relate to this system.
Required:
a) Evaluate the Economic Order Quantity for glass.
b) Determine total annual cost of ordering and carrying the glass.
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