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3) Andre Candess manages an office supply store. One product in the store is computer pape
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3) Andre Candess manages an office supply store. One product in the store is computer paper.
Andre knows that 10,000 boxes
will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3
days. The cost of placing an order is $30, while the holding cost is $15 per box per year. If Andre orders 500 boxes each
time he orders from his supplier, what would his total annual inventory cost be (holding cost plus ordering cost)? A)
$3,000 B) $3,075 C) $3,750 D) $4,350 E) none of the above
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