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Determining the economic order quantity model

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A company places orders optimally based on the Economic Order Quantity model. Compared to last year, this year their demand has increased 8-fold while the cost of capital has doubled due to shortage of cash. The company wants to manage their ordering quantity optimally, and the operations manager states that they should quadruple their order quantity in comparison to last year's order quantity. Is the operations manager right? Yes or No and WHY? with calculations.

Reference no: EM132826953

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