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Nataly [62]
2 years ago
14

Babble, Inc., buys 405 blank cassette tapes per month for use in producing foreign language courseware. The ordering cost is ​$1

5.00. Holding cost is ​$0.25 per cassette per year. a. How many tapes should Babble order at a​ time?
Business
1 answer:
Natasha2012 [34]2 years ago
3 0

Answer:

The appropriate solution is "764".

Explanation:

Given:

Demand per month,

D = 405

or,

  = 405\times 12

  = 4860

Ordering cost,

S = $15

Holding cost,

H = $0.25

As we know,

⇒  EOQ=\sqrt{\frac{2DS}{H} }

⇒            =\sqrt{\frac{2\times 4860\times 15}{0.25} }

⇒            =\sqrt{\frac{145800}{0.25} }

⇒            =\sqrt{583200}

⇒            =763.67

or,

⇒            =764

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