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What is the cost of holding one unit of component

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Reference no: EM132715720

Problem 1: A firm has used the economic order quantity (EOQ) formula to arrive at an EOQ for Component C1 of 400 units. Annual demand for Component C1 is 12,000 units and the cost of placing an order for the component is $40. What is the cost of holding one unit of Component C1 in inventory for one year?

Reference no: EM132715720

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