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29 May, 08:43

If dequals= 1,000 units per year, sequals= $62.50 per order, and hequals= $0.50 per unit per year, what is the economic order quantity?

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  1. 29 May, 09:07
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    The formula is

    EOQ=√ ((2DS) : H)

    D annual demand 1000

    S ordering or setup cost 62.5

    H annual holding cost 0.5

    EOQ=√ ((2*1,000*62.5) : 0.5) = 500
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