6.1 Calculate Total Cost and Per-Unit Cost Given Various ...
The excess holding cost is $400.06 annually. The annual holding and set-up cost incurred by this policy is $520.31 + 28 = $548.31 since there is only one set-up annually. The average annual holding and set-up cost at the optimal policy is . Therefore, the annual difference = $306.91. 13. If … ................
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