How much time will elapse between the placement of orders

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Reference no: EM132081634

Our company purchases microprocessors for use in our products and we purchase 2.5 million microprocessors each year.

Each time we place an order, it costs us $1,250 for all the paperwork, labor, postage, etc.

Each microprocessor costs us $2.53.

Our inventory holding cost is $0.557 per microprocessor

Assume that demand takes place at a constant rate.

What is the EOQ? How many orders will be placed each year? How much time will elapse between the placement of orders?

Reference no: EM132081634

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