Compute the economic order quantity and the frequency

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Mozart Company estimates that it will need 25,000 cartons next year at a cost of $8 per carton. The estimated carrying cost is 25% of average inventory investment, and the cost to place an order is $20.

Required:

Problem 1: Compute (a) the economic order quantity and (b) the frequency, in days, that orders should be placed, based on a 365-day year

Reference no: EM132676786

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