The local Toyota dealer has to decide how many spare shock absorbers of a particular type to order for repairing Toyota automobiles. This shock absorber has a demand of four units per month and costs $25 each. The carrying charge is 30 percent per year, and the ordering cost is $15 per order. a. What is the EOQ for this item?b. How often will the dealer reorder this part?c. What is the annual cost of ordering and carrying this part?
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