Question: A hamburger chain has a distribution location that uses 730 boxes of six-ounce paper bags annually. The costs of holding inventories are equal to 30%

A hamburger chain has a distribution location that uses 730 boxes of six-ounce paper bags annually. The costs of holding inventories are equal to 30% of the average investment in inventories and a box costs $ 12. The delay time in dispatch is known with certainty and is equal to 5 days. What is the policy you must follow to keep the operation optimal?

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