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The annual demand of a manufacturing component used in company JB Carry & Co Inc. is 21,000 units. The cost of the component is $82, and holding costs (which includes storage, insurance, and cost of capital) are 38% of the unit cost. Each time an order is placed, the company expects to incur costs, such as administrative and receiving, of $190. The supplier lead time is 9 days. Calculate the economic order quantity.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93126201

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