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Item X Is A Standard Item Stocked

in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,000 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more item X, it costs $10.
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Whenever item X is ordered, what should the order size be? 89 What is the annual cost for ordering item X? 224.72 What is the annual cost for storing item X? 222.50
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