a distributor of small appliances wishes to calculate the optimal order quantitiy for replenishing it stock of a particular washing machine. demand for the 200$ machine is stable throughout the year and averages about 1000 units annually. each order involves the cost of transportation, receiving and inspection, accounting for expenses of 500$ per order. holding costs are 20% per year.
a. what order quantitiy minimizes the annual replenishment cost
b. how does the optimal cost break down into holding and carrying components?
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Sep 21, 2019EXPERT
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