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An appliance manufacturer purchases the tub portion of the washing machines from a supplier with these prices: less than 500, $20 each; 500-999, $19 each; 1,000-1,399, 18 each; 1,400-1,999, $17 each; and 2,00 or more, $16 each. Order costs are $30 per order, annual demand is 10,000 tubs and holding costs are 30% of purchase cost. Determine the order quantity that will minimize total cost. (show your work)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93114786

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