XJL Limited demands a particular raw material every three months. At the end of each...
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XJL Limited demands a particular raw material every three months. At the end of each quarter, the company purchases 6,250 units of this material. Additionally, the cost of placing each order is estimated to be $32 which is the same as the cost of each unit of raw material. Management further estimated that annual holding cost is expected to be 20% of unit cost and that replenishments are made instantaneously. Calculate the EOQ Calculate the total cost. Hint: this should include purchase cost
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