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3. A local furniture store is examining its inventory policy and considering using an economic order...

3. A local furniture store is examining its inventory policy and considering using an economic order quantity (EOQ) approach for a popular table set that they have had difficulty keeping in stock. They have the following information about the set: Annual demand = 5000 sets Current order quantity = 750 Carrying cost = $2.00/unit/year Order cost = $450

a. What is the current total annual cost?

b. What is the economic order quantity?

c. What is the total annual cost at the EOQ?

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