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The projected demand rate for an inventory item is 3 0 0 units per week, and we use the item 5 2 weeks per year
The projected demand rate for an inventory item is units per week, and we use the item weeks per year We buy the item at a cost of $ per unit. Our fixed ordering cost S is $ per order, and our annual carrying cost rate is Our current ordering policy is to buy this item using an order quantity Q units each time we reorder. Compute the long run average annual ordering cost AOC if we use the rounded EOQ order quantity computed above.
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