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A large bakery buys flour in 50-pound bags. The bakery uses an average of 6380 bags a year. Preparing an order and receiving a shipment
A large bakery buys flour in 50-pound bags. The bakery uses an average of 6380 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $16.7 per order. Annual carrying costs are $10 per bag. The bakery holds 25 bags of flour in inventory as safety stock. What is the total annual cost of holding and ordering inventory of flour
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