Economic order quantity formula


Annual demand for a product is 40,000 units. The product is used at a constant rate over the 365 days the company is open every year. The annual holding cost for the product is estimated to be $2.50 per unit and the cost of placing each order is $125.00. If the company orders according to the economic order quantity (EOQ) formula then its average inventory level for this product would be??

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Business Management: Economic order quantity formula
Reference No:- TGS0108969

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