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Lowest sum of total carrying cost and total shortage cost

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XYZ is a retailer and sells 131,000 units per year. It purchases from a single supplier. Fixed costs per order are $846 and carrying cost is $13 per unit per year. In economic order quantity model, what would be the lowest total inventory cost? That is, the lowest sum of total carrying cost and total shortage cost. Enter your answer rounded off to two decimal points. Margin for error: +/- $10

Reference no: EM132652867

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