Question: Bell Manufacturing uses 16,000 switch assemblies per month and then reorders another 16,000. The relevant carrying cost per switch assembly is $3 per year and
Bell Manufacturing uses 16,000 switch assemblies per month and then reorders another 16,000. The relevant carrying cost per switch assembly is $3 per year and the fixed order cost is $80. What is the optimal order quantity?
A) 120
B) 924
C) 3,200
D) 14,400
E) 16,000
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