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The MSS Lumber Company and Mill processes 15,000 logs annually, operating 250 days per year. Immediately upon receiving an order, the logging company's supplier begins
The MSS Lumber Company and Mill processes 15,000 logs annually, operating 250 days per year. Immediately upon receiving an order, the logging company's supplier begins delivery to the lumber mill at a rate of 50 logs per day. The lumber mill has determined that the ordering cost is P3,200 and the cost of carrying logs in inventory before they are processed is at P750 per log on an annual basis. Determine the following: (a) the optimal order size, (b) the total inventory cost associated with the optimal order quantity, (c) the number of operating days between orders, (d) the number of operating days required to receive an order
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