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Holding Costs Are $35 Per Unit Per Year, the Ordering

Question 169

Essay

Holding costs are $35 per unit per year, the ordering cost is $120 per order, and sales are relatively constant at 300 per month. What is the optimal order quantity? What are the annual inventory management costs?

Correct Answer:

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Order size is Q* = blured image = 157.12 o...

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