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A company has the following inventory characteristics: Annual demand = 72,000 un...
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A company has the following inventory characteristics: Annual demand = 72,000 units; Ordering cost = $50/order; Annual holding cost = $2 per unit/year. If the company opts to order on a fixed monthly schedule (i.e., 12 orders per year) rather than using the EOQ, what is the approximate percentage increase in total annual inventory costs (ordering plus holding) compared to the EOQ policy?
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