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Assumptions that are required for its operation

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Reference no: EM131226532

Given the following information below, determine the following:

  • The total ordering costs
  • The total carrying cost
  • The total cost

Annual demand = 50 000

Order quantity = 5 000

Unit price = R5

Order cost = R200 per order

Carrying charge 25%

Provide a discusion using examples of the basic EOQ model along with the assumptions that are required for its operation.

Reference no: EM131226532

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