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Is Global Manufacturing inventory policy optimal

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Question - Global Manufacturing uses 3,800 machine parts per week and then reorders another 3,800. If the relevant carrying cost per machine part is $12.60, and the fixed order cost is $1,106.

1. Is Global Manufacturing's inventory policy optimal?

2. Why or why not? Show your work.

3. What would you recommend?

Reference no: EM133081247

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