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MGT402 Assignment 1 Solution fall 2012

Answer:         Economic Order Quantity in Previous Proposal:        Required Quantity= Rq= 12,500       Ordering Cost        = Co= 2,000       Inventory Unit cost =Uc= 500 per bail      Carrying & Storage Cost 10% Uc=Cc= 50      As Economic Ordering Quantity;  EOQ = (2(Rq*Co/Uc*Cc) ^ (1/2)                           = (2(12,500*2,000)/ (500*s50) ^ (1/2)                          = (2000) ^ (1/2) ... Read More »