Mathematics · Commercial Mathematics
A manufacturing company uses 28,000 components at an even rate during the year. Each order placed with the supplier of the components is for 1,600 components, which is the Economic Order Quantity (EOQ). The company holds a buffer inventory of 800 components. The annual cost of holding one component in inventory is $3.50. What is the annual cost of holding the inventory of the component?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$5,700
- 2$5,600✓
- 3$4,200
- 4$2,800
Correct answer
$5,600
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