A gift shop sells 2000 musical greeting cards each year with…
A gift shop sells 2000 musical greeting cards each year with the constant demand rate from customers. There are 250 working days a year. The ordering cost for musical greeting cards is $100 per order and the holding cost is $10 per musical greeting card per year. The Mega Production Company has given you the following information to work with: Q=2DSH Q is order quantity, D is annual demand, S is order cost, and H is annual holding cost. per unit What is the best order quantity (Economic order quantity) to minimize the total cost?
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