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The shipping cost of one order regardless of the order quantity is $1000. The demand of the component is stable and fixed at total 6500
The shipping cost of one order regardless of the order quantity is $1000. The demand of the component is stable and fixed at total 6500 over each year. You estimate holding cost at 20% annual interest rate. (a) What is the optimal order quantity you should use? (b) What is the cost of the proposed solution
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
1st edition
538453257, 978-0538453257
