What is economic ordering quantity

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1. You borrow $105,000; the annual loan payments are $12,077.58 for 30 years. What interest rate are you being charged? Round your answer to two decimal places.

2. Nowlin Pipe & Steel has projected sales of 19,200 pipes this year, an ordering cost of $4 per order, and carrying costs of $1.50 per pipe.

a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be?

Reference no: EM131950755

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