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A large producer of household products purchases a glyceride used in one of its deodorant soaps from outside of the company. It uses the glyceride
A large producer of household products purchases a glyceride used in one of its deodorant soaps from outside of the company. It uses the glyceride at a fairly steady rate of 40 pounds per month, and the company uses a 23 percent annual interest rate to compute holding costs. The chemical can be purchased from two suppliers, A and B. A offers the following all-units discount schedule: K=$150/order Find the optimal order amount and the optimal total inventory cost of supplier A. Note: Supplier B follows the incremental disccount and we did not cover it in the class
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