How much more is the current two-bin approach costing the, Mechanical Engineering

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How much more is the current two-bin approach costing the

The two-bin approach is used to control inventory for a particular low-cost component. Each bin holds 1200 units. The annual usage of the component is 45,000 units. Cost to order the component is around $70.

(a) What is the imputed holding cost per unit for this data?

(b) If the actual annual holding cost per unit is only 7 cents, what lot size should be ordered?

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