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The materials manager for a billiard ball maker places orders for foam, one of the raw materials used in producing billiard balls. She knows demand for foam is 60 kilograms each day, and that it costs $17.90 per year to carry a kilogram of foam in inventory. She also knows that the order costs for foam are $200.25 per order, and that the lead time for delivery is four (4) days. Assume 365 days in a year. The EOQ is 700 kg.

What would be the length of an order cycle – i.e. the time between successive orders using the EOQ?

Operation Management, Management Studies

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