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The enterprise needs to buy raw material A

Operations Management

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The enterprise needs to buy raw material A. its price is 30 RMB. the expected demand next year is 2000 pieces. the cost of each order is 15 RMB, the annual storage cost of each piece of A is 6 RMB. (1) What is the economic order quantity (EOQ)? (2) What is the annual Ordering cost? (3)What is the annual Holding cost?