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Determine the eoq if? the conditions stated? hold

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Tiger Corporation purchases 1,400,000 units per year of one component. The fixed cost per order is ?$55. The annual carrying cost of the item is 27.0?% of its ?$10.00 cost.

Problem 1: Determine the EOQ if? (1) the conditions stated above? hold, (2) the order cost is? $1.00 rather than ?$55?, and? (3) the order cost is ?$55 but the carrying cost is ?$0.01.

Problem 2: What do your answers illustrate about the EOQ? model?

Reference no: EM132936531

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