Assume a car dealer has demand for 1,000 cars per year. The unit purchase cost...
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Assume a car dealer has demand for 1,000 cars per year. The unit purchase cost is $20,000. The fixed cost for each order of cars is $5,000. It takes 2.5 weeks to receive an order. The holding cost equals 5% of the unit purchase cost per car per year (assume 12 months per year and 4 weeks per month).
c. How many cars should be on hand when the dealer places an order?
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