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please show steps 2. In Problem 1, demand for gasoline is still 2000 gallons per day. Your inventory carrying cost is 50 cents per gallons
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2. In Problem 1, demand for gasoline is still 2000 gallons per day. Your inventory carrying cost is 50 cents per gallons per year and ordering cost is $200 per order. Compute the annual carrying cost, ordering cost, and total cost for order quantities 10,000 to 30,000 gallons with an interval of 2000 gallons and plot them on a graph. (Either on a graph paper or Excel worksheet). Check the order quantity for which the two costs become equal. Determine the optimal order quantity by equating the annual ordering cost and inventory carrying cost or using the formula for the optimal order quantity. Check that the two costs are equal at the optimal order quantity Step by Step Solution
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