What is economic order quantity

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The concessions department of Dudy-Noble buys peanuts in 25-pound bags. An average of 1,535 bags a year are used each baseball season. Preparing an order and receiving a shipment of peanuts involves a cost of $15 per order. Annual carrying costs are $80 per bag of peanuts. In this example, pretend that baseball is played year-round.

What is the economic order quantity (EOQ)? Round up to the nearest bag.

Reference no: EM132262325

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