Fredericks Farm Factory (FFF) currently maintains an average inventory valued at $2,900,000. The company estimates its capital
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Frederick’s Farm Factory (FFF) currently maintains an average inventory valued at $2,900,000. The company estimates its capital cost at 8 percent, its storage cost at 4 percent, and its risk cost at 3 percent.
a) Calculate the annual holding cost rate for FFF.
b) Calculate the total annual holding costs for FFF.
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Related Book For
Operations Management An Integrated Approach
ISBN: 9781119497387
7th Edition
Authors: R. Dan Reid, Nada R. Sanders
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