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A firm requires 9 0 , 0 0 0 units ( D ) over a 1 2 0 - day production period and is placing

A firm requires 90,000 units ( D ) over a 120- day production period and is placing 2- orders 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 $ 5,000/ order and Holding Costs ( HC ) are 4.00/ unit based on average inventory . The price per unit of inventory is $ 50( C ). The firm pays for the inventory 5- days after delivery . The firm's cost of capital is 10% For the inventory system , HOLDING COSTS are : Total Cost Ordering Costs Holding Costs Item Cost Total Cost OCx ( D /(2)( CD ) PV PVF Order Payment Due At t = Cost Order Delivered At t Quantity Number 50.99863245,00012 $ 9,6050.960526150 $ 10,000 ORDERING COSTS ? HOLDING COSTS

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