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Calculate the annual ordering cost

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The annual demand for an item is 12000 units at a price of $15 per unit. The ordering cost is $80 per order and holding cost is 20% of the unit price.

Problem 1: Calculate the:

a. Economic order quantity

b. Number of orders

c. Annual ordering cost

d. Annual carrying cost

e. Total annual cost (including the material cost)

Reference no: EM132748713

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