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Business, 23.04.2020 03:13 lesleyy7278

Quarter-inch stainless-steel bolts, 1.5 inches long are consumed in a factory at a fairly steady rate of 50 per week. The bolts cost the plant 3 cents each. It costs the plant $10 to initiate an order, and holding costs are based on an annual interest rate of 20 percent.

a. Determine the optimal number of bolts for the plant to purchase and the time between the placement of orders

b. What is the yearly holding and setup cost for this item?

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