Computing annual cost to carry items in inventory, Operation Management

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Computing annual cost to carry items in inventory

Assignment:

Demand for an item is 3,600 units per year. Each order placed costs $25; the annual cost to carry items in inventory is $10 each. In what quantities should the item be ordered? (Round your answer to the nearest whole number.)

Provide complete and step by step solution for the question and show calculations and use formulas.

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Operation Management: Computing annual cost to carry items in inventory

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Operation Management: Computing annual cost to carry items in inventory

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