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Determine the optimum order size using the basic eoq model

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Reference no: EM132114231

Assume a wholesaler has to supply his customer with 40,000 units of a given product every year. Assume that demand is fixed and known. Assume the cost of placing each order is Shs 2.00 while the holding cost per unit is Shs 1.00. Required:

i) Determine the optimum order size using the basic EOQ model.

ii) Determine total costs incurred at optimum order size.

Reference no: EM132114231

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