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Question: George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 per unit. Each order placed costs George $150. He operates 300 days per year and has found that an order must be placed with his supplier 6 working days before he can expect to receive the order. For this subassembly, find
a) Economic order quantity
b) Annual holding cost
c) Annual ordering cost
d) Reorder point
The rule for maximizing net revenue
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