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2010-04-01_144712_Solution6-18 - Kenneth Mabry Quantitative...

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Kenneth Mabry Quantitative Analysis Homework 6-20 / 6-23 Lila battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother’s hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of forms used in the placing order, and so on. Furthermore, she estimates that the cost of carrying one screw in the inventory for an year is one-half of one cent. Assume that the demand is constant throughout the year. D = Demand = 100,000 C = Order cost = $10 h = holding cost = $0.005 A. How many number 6 screws should Lila order at a time if she wishes to minimize total
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