Ordering cost are 40 and the carrying cost is 25 percent., Ask an Expert

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a company experiences annual demand of 1000 units for an item that it purchases. The rate of demand per day is very stable,with very little variation from day to day. The item costs $50 when purchased in quantities less than 100 and $48 for 100 or more. Ordering cost are $40 and the carrying cost is 25 percent. How much should the company buy each time an order is placed?

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Operation Management, Management Studies

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