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The annual demand for a product is 15,600 units. Assume 52 weeks a year. Then the weekly demand is 300 units. There is no variability in demand. The cost to place an order is $31.20, and the time from ordering to receipt is four weeks. The annual inventory carrying cost is $0.10 per unit.
a. How much to order: Find the optimal ordering quantity.
b. When to order: Find the reorder point.
c. Compose a sentence as an inventory policy.
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