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A fimm requires 120,000 units (D) over a 200-day production period and is placing 2-orders of equal quantity (@). Inventory is used at a constant

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A fimm requires 120,000 units (D) over a 200-day production period and is placing 2-orders of equal quantity (@). Inventory is used at a constant daily rate. Ordering and Holding Costs are accounted for at end of the production period. Ordering Costs (OC) are $750/order and Holding Costs (HC) are $5.00/unit based on average inventory. The price per unit of inventory is $275 (C"). The firm pays for the inventory 30 days after delivery. The firm's cost of capital is 10% (i). For the inventory system, the COST of the second order is: Total Cost - Ordering Costs + Holding Costs + Item Cost Total Cost - OC (D/2) + (HCX (2/2)) + ( CD) Order Delivered At Order Payment Due Number Quantity Cost PVF PV Att 1 0 60.000 30 0.991848 2 ORDERING COSTS $1,500 200 0.948052 51A22 HOLDING COSTS $16,365,489 $33,000,000 $16.500,000 $15.932,540

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