Question: Annual demand = 1 2 0 0 0 units ( constant ) Unit cost = $ 1 0 Fixed ordering cost = $ 1 0

Annual demand =12000 units
(constant)
Unit cost = $10
Fixed ordering cost = $1000
Cost of capital =6% per year
Physical storage = $ 0.5 per month per
unit
Optimal Order Size? Annual Cost?

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