What is the optimal order frequency and order lot size

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Wilson industries sources from multiple suppliers and is considering the aggregation of inbound shipments to lower its costs. Truckloads shipping costs $500/ truck along with a $100 per pickup. Avg Annual demand from each supplier is 10,000 units. Each unit costs $50 and Wilson incurs a holding cost of 20%. What is the optimal order frequency and order lot size, if Wilson decides to aggregate 4 suppliers per truck?

Reference no: EM132041567

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