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A manufacturer produces milling machines. The milling bed screws necessary for each machine are produced by an outside supplier at a cost of $25 each.

A manufacturer produces milling machines. The milling bed screws necessary for each machine are produced by an outside supplier at a cost of $25 each. Five are needed each production day. The storage cost is 15%, while the cost to order is $25. Assume work occurs 240 days per year. If a 1 % discount is given on orders of 500 or more, should the discount be taken? What will the POQ be?

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