A company makes a product. They will need to purchase 18,000 units of a specialized component at a cost of $60 each. It costs $150 to make a purchase. The relevant carrying costs (material handling) cost is $6 per unit per year. The company requires a 15% annual rate of return on investment. How many units should they order at a time? 

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Answer rating: 100% (QA)

This is a classic inventory management problem where we need to find the optimal order ... View the full answer