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What is the optimal order size

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Question

XYZ shop has a favorite model that has annual sales of 145. The cost to place an order to replenish inventory is $25 per order, and annual inventory holding cost per unit is $20. Assume the store is open 350 days per year.

a. What is the optimal order size?

b. What is the optimal number of orders per year?

c. What is the optimal number of days between orders?

d. What is the annual holding and setup cost?

Reference no: EM132334904

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