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Demand for the Deskpro computer at Best Buy is 1,000 units per month. Best Buy incurs a fixed order placement, transportation, and receiving cost of $2,000 each time an order is placed. Each computer costs Best Buy $500 and the retailer has a holding cost of 15 percent. How many computers should Best Buy’s store manager order in each lot? How many orders will the store manager place each year?

Operation Management, Management Studies

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