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The demand for a product is 1,000 units per week, and the items are withdrawn at a constant rate. The setup cost for placing an
The demand for a product is 1,000 units per week, and the items are withdrawn at a constant rate. The setup cost for placing
an order to replenish inventory is $40. The unit cost of each item is $5, and the inventory holding cost is $0.10 per item per
week.
(a) Assuming shortages are not allowed, determine how often to order and what size the order should be.
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