Compute the total cost of ordering and carrying inventory

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Reference no: EM132193025

A product has a demand of 16000 units per year. Ordering cost is $25, and holding cost is $10 per unit per year.

a. Determine the economic order quantity?

b. What is the average inventory?

c. How many orders per year will be there?

d. Compute the total cost of ordering and carrying inventory.

Reference no: EM132193025

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