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Suppose the holding cost of commodity A is $0.01/ton/day. The consumption rate is 1000 tons/day. If the parcel size is 10,000 consumption rate is 1000 tons/day. If the parcel size is 10,000 tons, the transportation cost is $2/ton. If the parcel size is 20,000 tons, the transportation cost is $2/ton. If the parcel size is 20,000 tons, the transportation cost is $1.8/ton. How much should the tons, the transportation cost is $1.8/ton. How much should the consuming company purchase each time?
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