Calculate the annual order and annual holding costs

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Reference no: EM132231888

A service garage uses 120,000 air filters a year. The cost to place an order with a vendor is $30. In addition, the cans cost $10 per unit holding cost is 8 percent of purchase cost per unit on an annual basis. Determine the economic order quantity?

Then, D=120,000/year, S=$30, H=$0.80/year

Using the EOQ from the question above, calculate the annual order and annual holding costs.

Reference no: EM132231888

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