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A financial manager at Textbook Brokers, Inc. has estimated that it costs $30 to place an...

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Finance

A financial manager at Textbook Brokers, Inc. has estimated thatit costs $30 to place an order from a major publisher. Further, sheestimates that it costs $0.30 to hold each book. Textbook Brokerssells 75,000 books each 120 day period. In the past, the firm hasordered 4,000 books per delivery run. Calculate the difference inthe total inventory cost (per period) if the firm moves from anorder quantity of 4,000 books to the economic order quantity.

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Economic order quantity is the order quantity of inventory required to minimize the cost of inventory management EOQ is used under continuous inventory management mechanism in which the level of    See Answer
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A financial manager at Textbook Brokers, Inc. has estimated thatit costs $30 to place an order from a major publisher. Further, sheestimates that it costs $0.30 to hold each book. Textbook Brokerssells 75,000 books each 120 day period. In the past, the firm hasordered 4,000 books per delivery run. Calculate the difference inthe total inventory cost (per period) if the firm moves from anorder quantity of 4,000 books to the economic order quantity.

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