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Global Manufacturing uses 4,600 machine parts per week and then reorders another 4,600. If the relevant carrying cost per machine part is $15.30, and the

Global Manufacturing uses 4,600 machine parts per week and then reorders another 4,600. If the relevant carrying cost per machine part is $15.30, and the fixed order cost is $1,080,

  1. Is Global Manufacturings inventory policy optimal? (2marks)
  2. Why or why not? Show your work. (16 marks)
  3. What would you recommend? (2marks)

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