An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying

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An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying costs are 20%, and the cost of placing an order is $50. Calculate the following:

a. Average inventory.

b. Number of orders placed per year.

c. Annual inventory-carrying cost.

d. Annual ordering cost.

e. Annual total cost. LO.1

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Introduction To Materials Management

ISBN: 9780132337618

6th Edition

Authors: J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive

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Question Posted: Jul 22, 2024 06:00 AM

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An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying

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Introduction To Materials Management

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