William Beville’s computer training school, in
Richmond, stocks workbooks with the
following characteristics:
Demand ,500 units/year
Ordering cost S = $25/order
Holding cost H = $4/unit/year
a) Calculate the EOQ for the workbooks.
b) What are the annual holding costs for the
workbooks?
c) What are the annual ordering costs?
Chapter 12, problems 12.9
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