1. A bookstore has to stock a magazine that has a new edition every month. The current months edition sells for 10$ and costs the bookstore 5$ to acquire. Any older editions (i.e. unsold copies from past months) sell at a deep discount for only $2. 
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3. What is the cost of excess that can be used to compute the optimal ordering quantity for the magazine?

Answer rating: 100% (QA)

The cost of excess also known as the holding cost refers to the cost incurred by the bookstore for h... View the full answer