Determine eoq and total inventory costs at eoq level


AWM sells 291,600 units of product annually. Optimal safety stock is 500 units. Every units costs AWM $3, carrying costs are 30%, and cost of placing order with supplier is $20.

i) Determine EOQ.

ii) Determine total inventory costs at EOQ level.

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Mathematics: Determine eoq and total inventory costs at eoq level
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