Explain how much could industry save annually in ordering

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Q. A produce distributor uses 770 packing crates a month which it purchases at a cost of $10 each. Manager has assigned an annual carrying cost of 35 percent of purchase price per crate. Ordering costs are $28. Currently manager orders once a month. Explain how much could industry save annually in ordering and carrying costs by using EOQ?

Reference no: EM1374733

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