Question: The average demand for a particular part is 56 units a day. The unit cost of the part is $41. It costs $26 to place

The average demand for a particular part is 56 units a day. The unit cost of the part is $41. It costs $26 to place an order, and the inventory carrying cost per unit per year is 15% of the unit cost. Assume 250 working days a year. How many orders should be placed per year in order to satisfy demand and minimize total inventory cost?

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