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  • Jun 13, 2012, 02:42 AM
    olayemi23
    Business modelling for decision maker
    An agent supplies 1000 units per calendar month (PCM) OF A PRODUCT TO CONSUMER. The cost per unit is £175 and the amount cost of storage space is £40. Associated cost with Ordering/Re-ordering is £35 per order and interest rate are constant at 12.5% per year.
    1. Calculate the annual holding cost
    2. Calculate the EOQ
    3. Calculate the re-order level

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