9 Demand for an item is 1,000 units per year. Each order placed costs $10; the annual

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9 Demand for an item is 1,000 units per year. Each order placed costs $10; the annual cost to carry items in inventory is $2 each.

a. In what quantities should the item be ordered?

b. Supposing a $100 discount on each order is given if orders are placed in quantities of 500 or more. Should orders be placed in quantities of 500, or should you stick to the decision you made in a?

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Operations Management For Competitive Advantage

ISBN: 1572

11th Edition

Authors: Richard B. Chase, F. Robert Jacobs

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Question Posted: Jul 29, 2024 09:00 AM

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9 Demand for an item is 1,000 units per year. Each order placed costs $10; the annual

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Operations Management For Competitive Advantage

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