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    Important information about Economic Order Quantity (EOQ)

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    A large consulting firm orders photocopying paper by the carton. The firm pays a $30 delivery charge on each order. The total cost of storing the paper, including forgone interest, storage space, and deterioration, comes to about $1.50 per carton per month. The firm uses about 1,000 cartons of paper per month.

    Order Size

    100 200 250 500

    Orders per month
    Total orders cost
    Average inventory
    Total Carrying costs
    Total carrying costs

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    Economic Order Quantity. A large consulting firm orders photocopying paper by the carton.
    The firm pays a $30 delivery charge on each order. The total cost of storing the paper,
    including forgone interest, storage space, and deterioration, ...

    Solution Summary

    The solution calculates Orders per month, Total orders cost, Average inventory, Total Carrying costs and Total carrying costs for different order sizes to arrive at Economic Order Quantity (EOQ) are examined.

    $2.19

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