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Target is doing an inventory analysis for a popular item which has a demand of 1 0 , 0 0 0 units per year. The

Target is doing an inventory analysis for a popular item which has a demand of 10,000 units per year. The cost of each item is $ 9.99, and the inventory carrying cost is $.88 per unit per year. The average ordering cost is $15 per order. It takes about 3 days for an order to arrive. The store is open 360 days per year.

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