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A factory uses 4,500 units of a raw material per year. The ordering cost is HUF...
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A factory uses 4,500 units of a raw material per year. The ordering cost is HUF 8,000 per order. The purchase price is HUF 1,200 per unit. The company’s annual stock holding rate is 25% of the purchase price. The factory operates 250 days per year. The supplier’s lead time is 10 working days.
What is the optimal order quantity (EOQ)?
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