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CHAPTER 12
INVENTORY CONTROL MODELS
Internet Case Study: Western Ranchman Outfitters
The EOQ for a yearly demand of 2,000, order cost of $10.00 and holding cost of 0.12 (10.05) = $1.206 is
There is one remaining problem which Mr. Randell has, but the model doesn’t solve. That is the problem
of the unreliability of the supplier. By ordering one extra time (12 orders per year instead of 11) and by
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