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A supplier sells Hipoint-brand pens to stationary shops. The annual demand is approximately 24,000 pens. The supplier pays SR5 for each pen and estimates that the annual holding cost is 30 percent of the pen's value. It costs approximately SR350 to place an order. The supplier currently buys 1000 pens per order Determine the total annual cost for the EOQ

A supplier sells Hipoint-brand pens to stationary shops. The annual demand is approximately 24,000 pens. The supplier pays SR5 for each pen and estimates that the annual holding cost is 30 percent of the pen's value. It costs approximately SR350 to place an order. The supplier currently buys 1000 pens per order Determine the total annual cost for the EOQ

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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 supplier sells Hipoint-brand pens to stationary shops. The annual demand is
approximately 24,000 pens. The supplier pays SR5 for each pen and estimates that the
annual holding cost is 30 percent of the pen's value. It costs approximately SR350 to place
an order. The supplier currently buys 1000 pens per order

Determine the total annual cost for the EOQ  

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