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A food processor uses approximately 27,000 glass jars a month for its fruit juice product. Because of storage limitations, a lot size of 4,000 jars has been used. Monthly holding cost is 18 cents per jar, and reordering cost is $ 60 per order.

The company operates an average of 20 days a month.

a) What penalty is the company incurring by its present order size?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92054605

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