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This was one of the questions in the F2 exam today. I wasn’t quiet sure how to answer it. It asks what is the new EOQ.
It states a demand of material was 10,000kg and the current EOQ was $8000. No opening or closing inventory.
What is the EOQ if the holding costs become $4 per unit?
i assumed $8000 was paid for average inventory. which would be 2000 units hence eoq is double that 4000
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