Day: September 12, 2018

The managers have told you that your first priority should be to oversee the inventory control of a specific item, which has just seen a large increase in price. Since last year, the supplier of the item has been acquired by a competitor and increased the prices for certain items, including this one. As a result, in this year's contract, the item is purchased at $12 per item. Pumper's is currently using an policy for replenishment of the item, where is found using the EOQ model.

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