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Best construction Co. uses a specialized designed bracket to hold joist together. It uses 2500 of these brackets every year. Best has given this order to a small entrepreneur in 2-hour drive range.
The Following is the pertinent information about this bracket
Annual Demand 2500
Holding Cost/bracket/year $1.50
Order cost/order 79
lead time 250
A) What is the EOQ order Size?
B) Given the EOQ above, what would be the average quantity of this bracket in best's inventory?
C) What would be the reorder point?
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