Economic order quantity and optimal ordering frequency

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Reference no: EM131070887

SportsMart sells 500,000 baseballs annually. The baseballs cost SportsMart $24 per dozen ($2.00 each). Annual inventory carrying costs are 25% of inventory value and the cost of placing and receiving an order are $78. Determine the:

A) Economic Order Quantity

B) Total annual inventory costs of this policy

C) Optimal ordering frequency

Reference no: EM131070887

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