You are the inventory manager for a product facing known and constant demand (no variability)...
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Accounting
You are the inventory manager for a product facing known and constant demand (no variability) and has a fixed delivery lead-time (no variability). In fact, all requirements for the basic EOQ model are met. As such, you determine the optimal order quantity Q* for your product using the EOQ model. Using Q*, you find that your total relevant inventory management costs are $1,600 annually. Given only this information: (assume 4 quarters/year)
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