Calculate the annual carrying cost and the annual ordering, Operation Management

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Calculate the annual carrying cost and the annual ordering

Maggie Beville’s computer training school, in Arlington, stocks workbooks with the following characteristics:

Annual Demand D = 19,500 units per year

Ordering cost Co = $25 per order

Carrying cost Ci = 20%

Unit cost U = $20

Calculate the EOQ. Round the quantity to the nearest hundred and then calculate the annual carrying cost and the annual ordering cost using that number.

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Operation Management: Calculate the annual carrying cost and the annual ordering

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