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production operation, which is operated at a constant rate, will require 1 0 0 0 components per month throughout the year ( 1 2 ,

production operation, which is operated at a constant rate, will require 1000 components per month throughout the year (12,000 units annually). Assume that the ordering costs are $25 per order, the unit cost is $2.50 per component, and annual holding costs are 20% of the value of the inventory. Westside has 250 working days per year and a lead time of 5 days.

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