Optimal order quantity and the optimal time between orders

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The demand for a product is 700 units per week, and the items are withdrawn at a constant rate. The setup cost for placing an order to replenish inventory is $25. The unit cost of each item is $3, and the inventory holding cost is $0.05 per item per week. Find the basic economic order (EOQ) model for the total cost per unit. Use the model to determine the optimal order quantity and the optimal time between orders.

Reference no: EM131004848

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