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Fixed Order Quantity Inventory Model

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A company is planning for its financing needs and uses the basic fixed-order quantity inventory model.

What is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150?

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Solution Summary

Provides steps necessary to create a fixed order quantity inventory model.

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Please see the attached Excel file. Thanks

Annual Demand 10000 units
Cost per unit $150 ...

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