It costs $5 to store a unit of either product for a year. The cost of placing

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It costs $5 to store a unit of either product for a year. The cost of placing an order for either product separately or both products together is $100. Software EG’s annual cost of capital is 14%. Determine a cost-minimizing ordering policy.

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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