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What is the economic order quantity

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Question - DustVac buys from a wholesaler and sells at retail the model DV99 carpet vacuum with details as follows:

Usage per annum is 2 orders p.a. @ 1,500 units each

Order costs of $80.67 per order

Holding cost per unit per annum $40.00

What is the economic order quantity (rounded)?

a. 110 units

b. 78 units

c. 92 units

d. 88 units

Reference no: EM133043659

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