A service garage uses 120 boxes of cleaning cloths a year, Ask an Expert

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A service garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on an annual basis. Determine:

A) The economic order quantity

B) The total cost of carrying the cloths (excluding purchase price)

C) The average inventory

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