Mathematics, 10.04.2020 05:04 davidsteck99
The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is assumed to be constant at a rate of 40 cars per month. The cars cost $60 each, and ordering costs are approximately $15 per order, regardless of the order size. The annual holding cost rate is 20%.
Determine the economic order quantity and total annual cost under the assumption that no backorders are permitted.
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