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Purchase price of each box $200
Cost of placing and receiving an order $100
Cost of storing one box $4/year
Minimum usage per day 4 boxes
Maximum usage per day 8 boxes
Lead time for an order 5 days
The key ingredients come only in one Kg boxes and can make up to 20 meals per box. The restaurant is open 50 weeks a year and for 6 days a week.
Problem 1: how to calculate EOQ (economic order quantity)
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