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ABC company makes 27 orders of chairs in a year and orders 14,583 chairs each time. The fixed order costs are $655.67 per order and
ABC company makes 27 orders of chairs in a year and orders 14,583 chairs each time. The fixed order costs are $655.67 per order and the carrying cost per unit is $10.47. The chairs are sold out before they are restocked. What are the shortage costs if the company orders the optimal quantity (Economic Order Quantity)?
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