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Q1) Tool Mart sells 1400 electronic water pumps every year. These pumps cost $54.30 each. If annual inventory carrying costs are 12% and the cost of placing an order is $90, compute firm's EOQ? Determine the optimal ordering frequency?

Q2) Determine optimal length of one inventory cycle for firm which has economic order quantity of 750 units, average daily demand of 68 units, and price of $30 per unit?

 

 

 

Accounting Basics, Accounting

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