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Determine the optimal inventory policy

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An item sells for $25 a unit but a 10% discount is offered for lots of 150 or more. A company uses this item at the rate of 20 units per day. The setup cost for ordering a lot is $50 and the holding cost per unit per day is $.30. The lead time is 12 days. Determine the optimal inventory policy.

Reference no: EM131402130

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