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5. A manufacturing company uses 25,000 components at an even rate during a year. Each order placed with the supplier of the components is for

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5. A manufacturing company uses 25,000 components at an even rate during a year. Each order placed with the supplier of the components is for 2,000 components, which is the EOQ. The company holds a buffer inventory of 500 components. The annual cost of holding one component in inventory is $2. What is the total annual cost of holding inventory of the component? a) $2,000 b) $2,500 c) $3,000 d) $4,000

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