Question
A medical equipment has an average monthly demand is 134 units. Its unit cost is $385. It costs $486 to place an order, and the
A medical equipment has an average monthly demand is 134 units. Its unit cost is $385. It costs $486 to place an order, and the inventory carrying cost is $44 per unit per year. The equipment requires a 95% of service level with a safety stock requirement of 20 units. What is the equipment's minimum annual total inventory cost?
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Mastering Accounting Skills
Authors: Margaret Nicholson
3rd Edition
1403992703, 978-1403992703
