Folsom River products is contemplating the use of economic order quantity analysis to optimize inventory ordering activities and minimize inventory cost

Folsom River products is contemplating the use of economic order quantity analysis to optimize inventory ordering activities and minimize inventory cost. Below are data for three products the company sells. product RS2 PM3 SNZ Annual demand in units               24, 500       16,000      5,000 Cost per unit                                   $50           $20          $10 Cost to place an order                    $100         $60          $40 carrying cost as a percent of product cost                              20%            10%        16% Required: a)  Compute Economic order quantity b) Determine the number of orders placed annualy for each of the product c) Compute the total annual inventory ordering costs for the three products combined.

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