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What is the eoq

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Reference no: EM131746554

A retailer of a particular product has estimated its annual sales of the product at 38,000 per year. Its purchase cost is $4. The Order cost is $9 per order. Inventory holding costs are 25% of the wholesale cost.

a) What is the EOQ?

b) What is the total annual cost?

c) Suppose L= 3 days and the firm is open 5 days/week. Calculate the reorder point.

d) What is the average order interval?

Reference no: EM131746554

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