How many cases should be ordered at a time

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Reference no: EM13254953

A grocery store carries a particular brand of tea tha has the following characteristics:

Sales= 8 cases per week
Ordering Cost=$10 per order
Carrying Charges= 20% per year
Item Cost= $80 per case

How many cases should be ordered at a time and what factors might cause the company to order larger or smaller amounts than the EOQ?

Reference no: EM13254953

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