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Alexander Cherry has determined that the annual demand for number 6 screws is 2. 200,000 screws. Alexander, who works in his brother's hardware store, is

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Alexander Cherry has determined that the annual demand for number 6 screws is 2. 200,000 screws. Alexander, who works in his brother's hardware store, is in charge of purchasing. He estimates that it costs $10 every time an order is placed. This cost includes his wages, the cost of the forms used in placing the order, and so on. Furthermore, he estimates that the cost of carrying one screw in inventory for a year is one-half of 5 cents. (a) How many number 6 screws should Mr. Cherry order at a time (b) What is the optimal number of orders per year? (c) What is the total annual inventory cost? (d) What is the optimal number of days between orders

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