Given the following data: D = 65,000 units per year, S = $120 per setup, P = $5 per unit, and I = 25% per year, (a) calculate the EOQ, and (b) calculate annual costs of holding and setup following EOQ behavior
What will be an ideal response?
(a) Q* = = 3532.7 units
(b) TC = (S) + (H) = ($120 ) + (.25 )($5 ) = $2207.94 + $2207.94 = $4415.88
Business
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