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A customer and a supplier in a supply chain are planning to coordinate their orders together to maximize the total benefits of the supply chain.

A customer and a supplier in a supply chain are planning to coordinate their orders together to maximize the total benefits of the supply chain. Total demand is 2000 units per year. The holding cost ration for both is 0.2. The unit cost for customer is $140 and for supplier is $120. The ordering cost of customer is $50, and for supplier is $45. How much is the economic order quantity if they order together? How much is the total cost of the supply chain for ordering and holding inventory?

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