Define the fixed order interval approach

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1. The Hickory Bearkat is considering two location alternatives. Montreal has fixed costs of $4,000,000 per year, and variable costs $0.30 per unit. San Cinco has fixed costs of $3,600,000 per year, with variable costs of $0.35 per unit. If annual demand is expected to be 9 million units, which plant offers the lowest total cost?

2. Define

Fixed Order Interval Approach

Fixed quantity/irregular interval

Fixed interval/irregular quantity

Irregular quantity/irregular interval

Reference no: EM132262620

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