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An assistant manager of Costco is reviewing the costs associated with one of the store’s better-selling products. The data available follows.
Demand = 1,700 units/month
Order cost = $400/order
Holding cost = $10/unit/year
a. What would be the EOQ and its associated ordering and holding costs?
b. If the holding cost is actually $12 per unit per year and all other information remains the same, what is the new EOQ and the total annual inventory cost?
According to the expectancy theory, behavior modeling and supportive feedback would:
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