Question: A company orders two items. Item 1 costs $ 1 0 , has a yearly demand of 2 0 0 units, and has an ordering

A company orders two items. Item 1 costs $10, has a yearly demand of 200 units, and has an
ordering cost of $8. Item 2 costs $40, has a yearly demand of 180, and costs $20 to order. The
inventory carrying cost rate is 20 percent per year. Also, the total value of inventory must be
within a budget of $320 at any time. What order quantity do you recommend?
A company orders two items. Item 1 costs $10, has a

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