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Katadyn purchases 8,000 filters each year as components of their portable hiking water filters. The unit cost of each filter is $10, and the cost of carrying one filter in inventory for a year is $3. Ordering cost is $30 per order.

What are (a) the optimal order quantity, (b) the expected number of orders placed each year, and (c) the expected time between orders? Assume that Katadyn operates on a 200-day working year.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92558502

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