A distributor of electric motors experiences an annual demand of 10,000 motors which cost $30 per motor. She orders the motors in a batch ordering process where the ordering cost per order is $50. The annual holding cost is 10% of the cost of an electric motor.
What is the EOQ for this electric motor?
What is the total annual cost if the EOQ quantity is ordered?
(1 point) What is the average inventory of electric motors that the distributor will have?
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