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The Central Valve Company sells industrial valves and fluid control devices. One of Central's most popular valves, the Western, has an annual demand of 6,000 units. The price of each valve is $76, the inventory carrying cost is $5, and the ordering cost is $150 per order.
What is the economic order quantity?
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When are the holding costs raised? Holding cost rises while the size of order rises. It is since a higher level of average stock will be kept during the year. Thus holding cost
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