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In: Operations Management

1.A Company A sells 1200 bottles of a dietary supplement per week. The supplement is ordered...

1.A Company A sells 1200 bottles of a dietary supplement per week. The supplement is ordered from a supplier who charges Company A $80 per order and $50 per bottle. Company A’s annual holding cost percentage is 30%. Assume Company A operates 50 weeks in a year. What is the economic order quantity?

1.B Company A sells 1200 bottles of a dietary supplement per week. The supplement is ordered from a supplier who charges Company A $80 per order and $50 per bottle. Company A’s annual holding cost percentage is 30%. Assume Company A operates 50 weeks in a year. If Company A chooses to use the economic order quantity for supplement purchases, what will be the total of its holding and ordering costs per year?

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keosha answered 2 years ago
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