Find and calculate the total holding cost

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A company is able to manufacture its own components for stock at the rate 4000 units per week. Demand for the component is at a rate of 2000 units per week. Set up cost for each production run is $50. The cost of holding one unit of stock is $0.001 per week.

Problem 1: Calculate the:

a. Economic order quantity

b. Total order cost

c. Total holding cost

Reference no: EM132748715

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