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A medical supply distributor needs to determine the order quantities and reorder points for the various supplies. A particular item of interest costs $ 30 to order. The yearly carrying cost of the item is 20 percent of the product cost, and the item s cost is $ 250. Annual demand for the item is eight hundred units. Lead time for delivery is eight days and constant.
a. What is the EOQ for this item?
b. What is the total inventory management cost for this item?
c. What is the investment cost for the item?
d. What is the reorder point?
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