Detroit Motor Company (DMC), an automobile manufacturer, purchases 100,000 bumpers per year from DEECO, an automobile parts supplier. DMC pays DEECO $500 per bumper and a fixed delivery fee of $1000 per order. Holding costs are based on a 10% annual interest rate. Assume 50 weeks a year. A. How many bumpers should DMC order at a time?

Answer rating: 100% (QA)

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