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Suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $400. Suppose also that it costs $19

Suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $400. Suppose also that it costs $19 to produce each item and $3 per year to store an item. Use the inventory cost model to find the number of items in each production run so that the total costs of production and storage are minimized.

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