Anne Beck recently took over a beauty supply store.Her predecessor always ordered shampoo in quantities of 100 units.Anne is reevaluating this policy.Based on her analysis, the cost to place each order is $35 and the holding cost is $8 per shampoo bottle per year.The annual demand for this product is 2500 bottles.Should Anne change the current order policy and, if so, how much can she save?
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