A company uses 3000 pairs of mounted ball bearings annually, Operation Management

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A company uses 3000 pairs of mounted ball bearings annually

Question: A company uses 3000 pairs of mounted ball bearings annually. It costs the company $84 to order and receive this product. The mounted ball bearings cost $92.4 per pair. The company uses a factor of 15% of the purchase price to determine the annual holding cost for this product. What is the Economic Order Quantity (EOQ)?

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Operation Management: A company uses 3000 pairs of mounted ball bearings annually

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