Mathematics, 25.12.2021 20:40 Madi2277
A company forecast demand for components to average 18 a day over a year. Any shortages disrupt production and give very high costs. The holding cost for the component is $ 12 a unit a year, and the cost of placing an order is $ 24 an order. Find the economic order quantity, the optimal number of orders a year and the total annual cost of operating the system if the interest rate is 20% a year.
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