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A firm uses an inventory item with the following characteristics. Cost per-item $ 6.00 Annual consumption 5,000 Fixed cost per order placed $30.00 Carrying cost

A firm uses an inventory item with the following characteristics. Cost per-item $ 6.00 Annual consumption 5,000 Fixed cost per order placed $30.00 Carrying cost of inventory (as a % of dollar value) 25% How many times should the product be reordered each year and what are the related ordering and carrying costs of inventory?

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