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Question 4 (5 points) A firm requires 150,000 units (D) over a 150-day production period and is placing 2-orders of equal quantity (@). Inventory is

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Question 4 (5 points) A firm requires 150,000 units (D) over a 150-day production period and is placing 2-orders of equal quantity (@). Inventory is used at a constant daily rate. Ordering and Holding Costs are accounted for at end of the production period. Ordering Costs (OC) are $2,400/order and Holding Costs (HC) are $1.20/unit based on average inventory. The price per unit of inventory is $23 (C"). The firm pays for the inventory 60 days after delivery. The firm's cost of capital is 10% ((). For the inventory system, HOLDING COSTS are: Total Cost = Ordering Costs + Holding Costs + Item Cost Total Cost = OC (D/Q] + [HC (Q/2)] + (C" x D) Order Delivered At Payment Due Quantity PV Order PVF Cost At tu Number 60 0.983827 1 0 75,000 2 0.960526 $4,611 $4,800 150 ORDERING COSTS @ HOLDING COSTS $180,000 O $90,000 $45,000 None of the above

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