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Given the following information, calculate the annual cost of carrying inventory: Orders placed per year = 1,000 Receiving cost per order = $15 Annual office
Given the following information, calculate the annual cost of carrying inventory: Orders placed per year = 1,000 Receiving cost per order = $15 Annual office expense = $8,000 Average inventory = $500,000 Cost of capital = 10% of average inventory value Cost of storage = 5% of average inventory value Cost of risk = 3% of average inventory value
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