Determine the economic ordering quantity

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Reference no: EM132176070

Wilshire Farms uses 6000 pounds per year of a special feed supplement that costs $5 per pound. The supplement’s supplier offers a two percent discount (to $4.90 per pound) if it is ordered in quantities of 3000 pounds or more at a time. It costs $100 to place and receive an order.Wilshire uses an inventory carrying charge of 40 percent of value per year. Determine the economic ordering quantity. Please you please show all steps and formulas.

Reference no: EM132176070

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