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The information technology department of State University buys paper for its copier machine frequently. The office manager would like to determine the best quantity to order each time an order is placed. She has estimated that the ordering cost is $12 each time an order is placed. The monthly demand for paper is 135 reams (500 sheets to a ream). The cost of paper is $6.50 per ream, and the carrying cost is 25 percent of the paper cost per month. Base your answers to the following questions on the economics that are provided and using the traditional inventory models we have studied.
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-h
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Security Services, Inc. and Redline Protectors were the two predominant providers of home alarm systems in the Dallas area. They had become the two big businesses after the smaller
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