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Demand for the Desktop computer at Best Buy is 1 , 0 0 0 units per month. Best Buy incurs a fixed order placement, transportation,

Demand for the Desktop computer at Best Buy is 1,000 units per
month. Best Buy incurs a fixed order placement, transportation, and
receiving cost of $4,000 each time an order is placed. Each computer
costs Best Buy $500 and the retailer has a holding cost of 20 percent.
Evaluate the number of computers that the store manager should
order in each replenishment lot.

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