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How much will marigold save using the eoq

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Question - Marigold Ltd. uses 2,250 metres of fine gage brass each year. Brass wire costs $12 per metre, ordering costs are $55 per order, and carrying costs are $2.75 per metre. Currently, Marigold orders 500 metres in each order. Is this the most economical order size? If not, what is the economic order quantity? How much will Marigold save using the EOQ?

Reference no: EM133065984

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