Estimate that your fixed ordering cost

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Your MONTHLY demand for the Whatchamacallit is 20,000 units. You estimate that your fixed ordering cost is $450 and the annual holding cost percentage is 15%. The cost for Whatchamacallit is $30 per unit. (Round order quantities to whole numbers and costs to 2 decimals.) If you have a single warehouse to store the inventory, what is the economic order quantity (EOQ) for the Whatchamacallit? What is the total annual cost (holding + setup)?

Reference no: EM131041831

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