Optimal ordering quantity
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6-42, Georgia Products offers the following discount schedule for its +- by 8-foot sheets of good-quality plywood:
Home Sweet Home Company orders plywood from Georgia Products. Home Sweet Home has an ordering cost of $45. The carrying cost is 20%, and the annual demand is 100 sheets. What do you recommend?
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Solution Summary
The solution computed based on economic order quantity and adjusted order quantity.
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