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Company A stocks a certain product at its central warehouse for supplying field service offices. The yearly demand for this product is 15000 units. The annual holding cost for this item is $25 per unit. The cost to place and process an order from the supplier is $75. The company operates 300 days per year, and the lead time to receive an order from the supplier is 2 working days.
a) Find the economic order quantity
b) Find the minimum annual holding cost
c) Find the minimum annual ordering cost
d) Calculate the number of days between 2 successive orders
e) What's the reorder point?
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