Question: You are the inventory control manager for a large firm. At the annual planning session, you are setting the inventory policy for your major items.
You are the inventory control manager for a large firm. At the annual planning session, you are setting the inventory policy for your major items. While doing this, you realize that it is difficult to accurately estimate the actual cost for placing an order. Therefore, to be on the safer side, you decide to set the actual order quantity at more than the computed economic order quantity.
By how much in percentage will the new Total Relevant Cost be different from the optimal Enter your answer as a decimal between and with significant digits. For example, for enter
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