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Business, 15.04.2021 16:00 OGrant18075

A grocery store orders frozen pies in batches from a bakery and sells them in the grocery store. Storing one frozen pie for a year costs $0.95. When the grocery store reorders pies, there is a fixed cost of $1.95 per order as well as $0.65 per pie. Each year, they sell 3250 frozen pies. What is the optimal number of pies to order in each order to minimize their total inventory costs.

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