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GNC is a retailer that sells Vitaherb, a popular vitamin diet supplement. Demand for Vitaherb is 10,000 bottles per month. The manufacturer currently charges $5 for each bottle, and GNC incurs an annual holding cost of 12 percent. GNC currently orders their EOQ of 6,500 bottles. The manufacturer has offered a discount of $0.35 for all bottles purchased by retailers over the coming month. How many bottles of Vitaherb should GNC order give this short-term discount?

Operation Management, Management Studies

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