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Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that Farmer can order the ink at a cost of $2
Assume that Palmer Executive Pens uses 1,440,000 gallons of ink each year. Further, assume that Farmer can order the ink at a cost of $2 per gallon plus fixed ordering costs of $100 per order. the firm carrying cost is 20 percent of the inventory value, at cost. what is Palmers minimum costs of ordering and holding inventory?
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