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. A company in Calgary serves a market in the north - western United States. Now it ships LTL at an average cost of $

. A company in Calgary serves a market in the north-western United States. Now it
ships LTL at an average cost of $28 per unit. If the company establishes a
distribution centre in the market, it estimates the TL cost will be $15 per unit,
inventory-carrying costs will be $6 per unit, and the local LTL cost will average $6
per unit. If the company forecasts annual demand at 100,000 units, how much will
they save annuall

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