What is the economic order quantity
Problem
A carpenter uses roughly 15,000 sanding pads in one year. The set-up costs are $15.00 and carrying costs are estimated at 2%. Each pad costs $4.50. What is the economic order quantity?
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The set-up costs are $15.00 and carrying costs are estimated at 2%. Each pad costs $4.50. What is the economic order quantity?
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