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Find the total inventory carrying costs and the total ordering cost using the economic order quantity inventory model. C: unit variable cost of production, I:

Find the total inventory carrying costs and the total ordering

cost using the economic order quantity inventory model.

C: unit variable cost of production, I: inventory carrying cost

rate per period, R: demand rate in units per period, S: fixed

cost of a replacement order.

C = $1, I = 20 percent, R = 8,000 units, and S = $12.50.

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