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What krause economic ordering quantity for small processors

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Problem 1: Krause Precision Tools, Inc. will use an estimated 700,000 small processors in its manufacturing process next year. The carrying cost of processor inventory is $3.00 per unit and the cost of reordering processors is $100 per order. What is Krause's economic ordering quantity for small processors?

a. 6,340
b. 6,831
c. 7,118
d. 7,300

Reference no: EM132775076

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