Determine the optimal order quantity

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Reference no: EM13230123

The home goods department of a large department store sells 175 units per month of a certain large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an order is estimated to be $12.00. The store uses an inventory carrying cost of 27% per year.

Determine the optimal order quantity, order frequency and the annual cost of inventory management.

Reference no: EM13230123

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