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Calculate the number of orders to be placed each year

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Reference no: EM132761487

ABC Ltd is expecting demand for its product this year to be 120,000 units. It has calculated its ordering cost to be $400 per order and carrying cost per year to be $5 per unit. The purchase lead time is 3 weeks. Assume 52 weeks per year.

Problem a) Calculate the economic order quantity

Problem b) Calculate the number of orders to be placed each year

Problem c) Calculate the reorder point

Reference no: EM132761487

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