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Business, 15.04.2020 17:47, quissowavyquis4808
A liquid company produces hand sanitizer which has demand of 300,000 units per year.
The production cost of the product is $0.5 per unit.
The company decided to use 10% of the production cost for inventory carrying cost.
At each order, the company needs to pay extra $20 for the paperwork.
Assume that an order replenishes instantaneously. Compute economic order quantity, optimal order interval, and total annual cost.
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Answers: 2
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