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A flower shop wants to reduce inventory costs by reducing the size of its refrigerator. This would bring savings in electricity consumption. To find out
A flower shop wants to reduce inventory costs by reducing the size of its refrigerator. This would bring savings in electricity consumption. To find out what is the smallest size refrigerator it can use, it must estimate the optimum number of boxes of flowers to order for each order. If your annual demand is 2000 boxes of flowers and each order costs you $15.00. What is the minimum number of boxes to order (Q*) if the inventory cost per box is $2.00?
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