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Assume the demand for number 2 pine 2 by 4's is 10,000 board feet per year and the purchase price from suppliers is $0.05 per
Assume the demand for number 2 pine 2 by 4's is 10,000
board feet per year and the purchase price from suppliers is
$0.05 per board foot. If it costs $0.01 to hold one board foot
in inventory for one year and if it costs $10 to place an order,
then find the optimal order quantity and the total cost when
ordering the optimal quantity.
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