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Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 1
Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about of item X which costs $ each. Storage costs, which include insurance and cost of capital, amount to $ per unit of average inventory. Every time an order is placed for more of item X it costs $
Using EOQ model, after finding the optimal order quantity, what is the annual cost for ordering item X
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