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Faber Manufacturing, Inc., of St. Paul, Minnesota, purchases 10,000 top-of-the-line semiconductor; unit purchase price = $35.00; ordering cost/order = $100.00; annual holding cost/unit = $3.50;
Faber Manufacturing, Inc., of St. Paul, Minnesota, purchases 10,000 top-of-the-line semiconductor; unit purchase price = $35.00; ordering cost/order = $100.00; annual holding cost/unit = $3.50; lead time = 1 month (the firm operates 12 months per year). If the firms customers do not object to backordering and each unit backordered costs $ 5.00/year, then:
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