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Mathematics, 14.06.2021 01:00 thebestaround15

A well-known professional taxidermist pursuing an MBA degree is planning a strategy for restocking the chemicals inventory. There is a yearly demand of 24 gallons of polyester resin. The ordering cost per order is $10.00 and the holding cost per gallon each year is $0.83. In the past, the taxidermist ordered only the monthly demand of two gallons per month. However, after a quantitative methods class, the taxidermist decided to estimate the economic order quantity. Which decision should this taxidermist make to minimize the total inventory cost when ordering?

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