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A company uses 5000 items per annum which has a price of $2 each. The ordering costs are $150 per order and holding costs are $1.50 per item per annum. (a). Calculate the EOQ  (b). Using the EOQ as the number of items ordered, calculate the number of orders per annum, average stock, . annual stock hold

A company uses 5000 items per annum which has a price of $2 each. The ordering costs are $150 per order and holding costs are $1.50 per item per annum. (a). Calculate the EOQ  (b). Using the EOQ as the number of items ordered, calculate the number of orders per annum, average stock, . annual stock hold

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A company uses 5000 items per annum which has a price of $2 each. The ordering costs are $150 per order and holding costs are $1.50 per item per annum.

(a). Calculate the EOQ 

(b). Using the EOQ as the number of items ordered, calculate the number of orders per annum, average stock, . annual stock holding cost, annual order cost, total annual inventory cost and total annual cost of items and inventory. 

 

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