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1. A jewellery firm purchases semiprecious stones to make bracelets and rings. The supplier charges $20 per stone, yearly carrying costs are 50%, and cost of processing orders is $40. The jewellery firm activates 200 days for each year and their usage rate is 36 stones per day.

a. Find out the economic order quantity.

b. Evaluate the total cost of carrying and ordering semiprecious stones.

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