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Business, 25.11.2019 20:31 as02540

Henry crouch’s law office has traditionally ordered ink refills 60 units at a time. the film estimates that carrying cost is 40%ofthe 510 unit cost and that annual demand is about 240 units per year. the assumptions ofthe basic e00 model arethought to apply. a) for what value of ordering cost would its action be optimal? b) lfthe true ordering cost tums out to be much greater than your answer to (a), what is the impact on the firm‘s orderingpolicy?

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