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What is economic order quantity for item

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You run the inventory department at the global retailer, Dog World. One of your products, a food and water bowl set, has an annual demand of 2500 units per year and they cost you $22 each. Your inventory holding charge is 25% per year and you estimate it costs about $175 to place an order. The supplier requires you to order in increments of 10 at a time.

What is your economic order quantity for this item?

Reference no: EM131881882

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