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William Beville’s computer training school, in Richmond, stocks workbooks with the following characteristics:Demand D = 19,500 units/yearOrdering cost S = $25/orderHolding cost H = $4/unit/yeara) 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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Answer:

a) EOQ = 494 units

b) Annual Holding cost = $988

c) Annual order cost = $988

Explanation:

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