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Determine the order size for Company A in the given scenario that would minimize total annual cost by using the economic order quantity model, showing all of your work

Company A:

An electronic retail chain wishes to minimize its ordering costs for a particularly popular model

of laptop computer. This retail chain has a line of credit to finance its inventory and the current

holding rate is 5.5%. The chain estimates it can sell 670,000 units per year and it pays $375 dollars

per unit. It costs $32 dollars to place each order. How many units should it order each time?

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