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How many widgets should the manufacturers load

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Reference no: EM132216184

Manufacturer is considering purchasing widgets from a supplier in Nebraska. The widgets can be shipped to manufacturer by truck. The cost of the truck delivery are 1000 per order for up to 2000 widgets. The demand for the widgets is 300 per day. The cost of the widget is 500. The holding cost of the widget is 20%.

Question: How many widgets should the manufacturers load on each delivery in order to minimize annual delivery and cycle inventory costs?

Reference no: EM132216184

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