Posted: February 17th, 2016
use the equation method to compute the economic order
For each of the following independent cases, use the equation method to compute the economic order
quantity.
Case A Case B Case C
Annual requirement (in units) ………………………………………… 13,230 1,681 560
Cost per order ………………………………………………………………..$250 $40 $10
Annual holding cost per unit ………………………………………………. 6 20 7
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