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Major League Lumber (MLL) sells baseball bats. Its most popular models are the Williams and the Mendoza. The sales rates of the two models are the same. Although they come from different suppliers, the models have similar ordering costs. The Mendoza, however, costs MLL twice as much as the Williams. MLL’s current policy is to order 200 Mendoza bats when it places an order and to order 400 Williams bats when it places an order. Is MLL ordering optimally (i.e., ordering to minimize its annual holding and ordering costs) for both models?
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