Question: A certain product costs $ 2 0 0 to order. The cost per unit is $ 2 5 and the cost to carry one unit
A certain product costs $
to order. The cost per unit is $
and the cost to carry one unit in inventory for
year is
of the value of the product. Monthly demand is
units The company operates
days a week,
weeks per month.
Assume the company manufactures the unit instead of purchasing it
and so the replenishment is not immediate, but rather gradual over time. If the production rate is
units per day, what is the optimal order quantity? answer choices are:
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