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3 points A certain type of computer costs 5 827 and the annual holding cost is 25% of the value of the am Annual demand is 10
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Answer #1

Optimal Order Quantity = square root of (2DS/H)

D is demand = 10,000 units

S or setup cost = $114

H or holding cost = 25% of 827 =$ 206.75

Optimal order quantity = sqrt (2×10,000×114/206.75) = 105.01 ~ 105 units

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