How many spare shock absorbers to order for a small

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A local Toyota dealership has to decide how many spare shock absorbers to order for a small selling model of car. This shock absorber has an average demand of four units per month. It sells for $25. The carrying charge on this part is 30 percent per year. The dealership has calculated that it costs $15 in overhead to place an order. Determine the EOQ (round to the nearest whole number).

Reference no: EM1385505

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