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What is the total annual cost associated with the best order quantity?Group of answer choices7790.0000335.0000

Question

What is the total annual cost associated with the best order quantity?

Group of answer choices

  • 7790.0000
  • 335.0000
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Solution

To determine the total annual cost associated with the best order quantity, we would typically need more information regarding the variables involved, such as demand, ordering costs, holding costs, and other relevant factors. However, since you provided choices, I will help you identify the correct answer based on the given information.

Here are the steps you can take if actual calculations are needed:

  1. Break Down the Problem

    • Identify the key variables needed to calculate the total annual cost.
    • This typically includes:
      • Demand (DD)
      • Ordering cost per order (SS)
      • Holding cost per unit per year (HH)
  2. Relevant Concepts

    • Use the Economic Order Quantity (EOQ) formula if applicable: EOQ=2DSH EOQ = \sqrt{\frac{2DS}{H}}
    • Total annual cost (TC) can then be calculated as: TC=Ordering cost+Holding cost+Purchase cost TC = \text{Ordering cost} + \text{Holding cost} + \text{Purchase cost}
  3. Analysis and Detail

    • Substitute the values of DD, SS, and HH into the EOQ formula to find the best ordering quantity.
    • Calculate the total annual costs using the EOQ found.
  4. Verify and Summarize

    • Double-check the calculations to ensure accuracy.
    • Compare the total costs calculated with the provided answer choices (7790.0000, 335.0000).

Final Answer

Since specific variable values were not provided, I cannot calculate the total annual cost directly. However, review the process outlined and perform calculations with the necessary data to find the correct answer amongst the options given.

This problem has been solved

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