A jeweler purchases silver for use in its products. The firm uses 180 grams of silver per week and purchases silver for $2.6 per gram from a supplier. The cost to hold one gram of silver in inventory for one year is $0.52. Each time the firm orders silver from the supplier, the firm must pay a $12 order processing charge.
Required:
What is the optimal order quantity (in grams)?
Answers: 1
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A jeweler purchases silver for use in its products. The firm uses 180 grams of silver per week and p...
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