Reconsider Example 13.1. Each time Machey’s orders cameras, it incurs a $125 ordering cost. Assume that Machey’s could make an investment to decrease this ordering cost. Suppose that any 10% decrease costs a fixed amount, C dollars. Using i =0.10 and Solver, experiment with different values of C to see how Machey’s optimal order quantity is affected. Assume the minimum possible ordering cost is $35.
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