Exercise III-3 - Economic Order Quantity

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 Exercise 3

 Economic Order Quantity

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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