The annual demand for an item is 2400 units. The

The annual demand for an item is 2400 units. The inventory holding cost is $ 6.00 per unit per year. The demand is continuous and constant, that is, 200 units/month. The item is purchased in two lots. The size of the first lot is 1600 units and the size of the second lot is 800 units. Find the total annual cost of holding inventory.


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