The annual demand of a manufacturing component

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The annual demand of a manufacturing component used in company Bent Safetywear Ltd is 32,000 units. The cost of the component is $38, and holding costs (which includes storage, insurance, and cost of capital) are 35% of the unit cost. Each time an order is placed, the company expects to incur costs, such as administrative and receiving, of $30. The supplier lead time is 5 days. Calculate the economic order quantity.

Reference no: EM131663141

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