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Alpha Company has 10 work stations where work in process is held, 100 average units in work in process per station, an average cost

  

Alpha Company has 10 work stations where work in process is held, 100 average units in work in process per station, an average cost of a unit in work in process of P75, and an annual inventory carrying cost of 20%. If Alpha plans the the work in process level be reduced to 40% , the expected annual savings in carrying costs would be:

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P 15 000 The calculation is as follows 10 work stations x 100 average un... blur-text-image

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