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A service garage uses 2500 boxes of cleaning cloths a year. Ordering cost is $80 and holding cost is $1.6 on an annual basis.
Please compute the following tasks using EOQ model.
(a) The economic order quantity based on EOQ model?
(b) The total cost of ordering and carrying?
(c) Suppose the current order size is 400. What additional annual cost is the company incurring by staying with the order size 400?
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