Answer:
EOQ = ≅ 8
Explanation:
EOQ = √(2SD)/H
S = ordering cost per order = $5.0
H= Holding cost = $76
D= Annual Demand = 484 drums
EOQ = √(2 x 5 x 484 )/76
= √63.68
7.98
This implies that the optimal quantity that can be ordered for to minimize ordering and carrying cost is 8 drums per order.
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Answer:
Ur answer is that When the U.S. dollar is undervalued, the cost of a basket of goods in the United States is lower than the cost in Mexico when evaluated at the current exchange rate. To a U.S. tourist, Mexican goods and services would seem more expensive on average. Thus an undervalued currency will buy less in other countries.
Explanation:
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