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Cases of electronic parts

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A store uses 900 cases of electronic parts each year. The cost of storing one case for a year is 80 cents and the ordering fee is $40 per shipment. How many cases should the store order each time to minimize total cost? Assume the orders are planned so that a new shipment arrives just as the number of cases in the store reaches zero. Also assume the parts are consumed at a constant rate.

Reference no: EM131483956

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