Question: A food processor purchases corn for use in its products. The firm uses 5 0 0 pounds of corn per week and purchases corn for

A food processor purchases corn for use in its products. The firm uses 500 pounds of corn per week and purchases corn for $0.25 per pound from a supplier. The cost to hold one pound of corn in inventory for one year is $0.05. Each time the firm orders corn from the supplier, the firm must pay an order processing charge of $40.

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