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Discount-Mart, a major East Coast retailer, wants to determine the economic order quantity for its halogen lamps. It currently buys all halogen lamps from Specialty Lighting Manufacturers, in Atlanta. Annual demand is 2,400 lamps, ordering cost per order is $0.80, carrying cost per lamp is $20. As part of its new JIT program, Discount-Mart has signed a long-term contract with Specialty Lighting and will place orders electronically for its halogen lamps
A) What is the economic order quantity?
B) How Many Orders Will Now be placed
C) What is the total annual cost of managing the inventory with this policy?
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Determine whether each example is based on cost-plus pricing, markup pricing, demand-based pricing, or competition-based pricing:
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