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Hayden Solutions needs 20,000 units of aluminum panels per year for its sign-making business. The carrying/holding cost per unit per year is $30 and the fixed ordering cost is $1,200.
Problem 1: What is the optimal quantity to order so that inventory cost is minimized?
Problem 2: How often (approximately every how many days) should Hayden Solutions order the inventory of aluminum panels? Assume a 365-day year.
Problem 3: What is the annual carrying/holding cost at this optimal order quantity?
Accounting should achieve and that accounting practitioners should become scientists. Explain why both parts of this statement are misconceptions
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