What manufacturing operation must periodically purchase

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Q. A manufacturing operation must periodically purchase bulk quantities of washers. The washers are purchased in boxes of 400 and are consumed at a constant rate. The operation expects to purchase 12,500 boxes over the coming year. Each box costs $150, the Yearly holding cost per box is $25 and the cost of placing an order is $80 (regardless of the quantity ordered). For the following questions, use the basic economic order quantity model (without quantity discounts).

Reference no: EM1373884

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