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The home goods department of a large department store sells 175 units per month of a certain large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an order is estimated to be $12.00. The store uses an inventory carrying cost of 27% per year.
Determine the optimal order quantity, order frequency and the annual cost of inventory management.
An insulated shipping container supplier is considering expanding its product line. Three materials with different insulation properties are under consideration. The following info
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