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How many units should they purchase

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Bamazon Inc's demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with a 10% discount for orders of 15 units or higher. Bamazon Inc. incurs a 25% annual holding cost. Assuming the firm operates optimally, how many units should they purchase each time they place an order?

Reference no: EM131989084

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