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Overland has a part with a unit cost of $40. It costs $52 to place, process, and receive an order. The carrying cost of the
Overland has a part with a unit cost of $40. It costs $52 to place, process, and receive an order. The carrying cost of the inventory is approximately 20% of the part's peso value per year. The firm uses 2000 of the parts each year. What order quantity minimizes total inventory cost?
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