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    EOQ Model

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    Computer training schools, stock workbooks with the following characteristics:

    Demand D = 19,500 units/year
    Ordering cost S = $25/order
    Holding cost H = $4/unit/year

    a) Calculate the EOQ for the workbooks?
    b) What are the annual holding costs for the workbooks?
    c) What are the annual ordering costs?

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    Solution Summary

    The solution discusses computer training schools and stock workbooks and determines the EOQ.