The annual demand for a product has been projected to be

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The annual demand for a product has been projected to be 2,000 units. This demand is assumed to be constant throughout the year. The ordering cost is $20 per order, and the holding cost is 20 percent of the purchase cost. Currently, the purchase cost is $40 per unit. There are 250 working days per year. Whenever an order is placed, it is known that the entire order will arrive on a truck in six days. If the total holding cost for the year is $2,000, how many units does the company order at a time?

  • 300
  • 400
  • 500
  • 600
  • none of the above

Reference no: EM13460842

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