Sharp, Inc., a company that markets painless hypodermic needles to hospitals, would like to reduce its inventory

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Sharp, Inc., a company that markets painless hypodermic needles to hospitals, would like to reduce its inventory cost by determining the optimal number of hypodermic needles to obtain per order.

APPROACH c The annual demand is 1,000 units; the setup or ordering cost is $10 per order; and the holding cost per unit per year is $.50.

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