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QUESTION

A missile manufacturer requires an electrically wired subassembly for final assembly.

Q.A missile manufacturer requires an electrically wired subassemblyfor final assembly. Annual subassembly demand is 480 “wire bundles”;order costs are $85; carrying costs are 75% of average inventoryinvestment; and bundles cost $1,125 each. Delivery time is known withcertainty to be 21 days. Establish the optimal operating doctrine.

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