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A Store Has Collected the Following Information on One of Its

question 36

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A store has collected the following information on one of its products:
Demand = 4,000 units/year
Ordering costs = $15/order
Holding costs = $2/unit/year
Lead-time = 5 days weeks
Number of weeks per year = 50 weeks
If a firm uses the continuous review system to control the inventory, what would be the order quantity?


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