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Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $6
Average demand for a particular item is 1,200 units per year. It costs $100 to place an order for this item, and it costs $6 to hold one unit of this item in inventory for one year. If the fixed-order-interval model is chosen in this instance, how often (on average) will this item be ordered?
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three times every two months
once every three months
twice a month
once every other month
once a month
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