A company stocks an item that is consumed at the rate of 50 units per day. It
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A company stocks an item that is consumed at the rate of 50 units per day. It costs the company $20 each time an order is placed. An inventory unit held in stock for a week will cost $.35.
(a) Determine the optimum inventory policy, assuming a lead time of 1 week.
(b) Determine the optimum number of orders per year (based on 365 days per year).
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a b Optimum number of orders ...View the full answer
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