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Calculate the economic order quantity

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SDR is a company that makes bicycles. It produce 450 bicycles a month. It buys the tiles for bicycles from a supplier at a cost of $20 per tile. The company inventory carry cost is estimated to be the %15 of cost. The ordering is $50 per order.

Question

1) Calculate the annual demand

2) Calculate the economic order quantity

3) Calculate the total cost

4) Calculate maximum stock level

5) Calculate the total number of orders per year

Reference no: EM132783793

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