Question: 1. The demand for a certain item is 1200 units per year. The purchase cost is $15 per unit, and the ordering cost is $100

1. The demand for a certain item is 1200 units

1. The demand for a certain item is 1200 units per year. The purchase cost is $15 per unit, and the ordering cost is $100 per order. The annual cost of inventory carrying is estimated to be 10%. At present, the order size used is 100 units per order. What would be the potential yearly saving if an optimal order size were used

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