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04-11-2022
Business

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A business person uses 1500 units of a specific subassembly part yearly, with an annual holding cost of $45 per unit. each order placed costs them $150. in one year they find out that their forecasting department has made an error in estimating the demand and instead of the correct demand, they had reported the same 1500 units and calculated the eoq resulting in an error of 1% underestimation in optimal total cost. neglecting purchasing cost in your calculations, what is the correct demand value?

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