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Economic order quantity model in placing the orders

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Appliance for Less is a local appliance store. It costs this store $20.79 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 273 units. Each order costs $64. The company is using Economic Order Quantity model in placing the orders.

What is the average inventory held during the year including safety stock if the store insists on a 5 days safety stock (assume 365 days a year)? (Round the answer to the whole number)

Reference no: EM131411707

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