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Calculate the economic order quantity

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A local pharmacy sells self-test kits for diabetic patients. These kits cost $15 each. Customers want to buy the kits at a rate of 240 per week. The pharmacy operates 52 weeks per year. The ordering cost is $50. Annual holding costs are 20 percent of the unit cost. Lead time is 2 weeks. Calculate the economic order quantity (EOQ), the total annual costs using the EOQ and the reorder point.

Reference no: EM132417242

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