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Question 1: Cost of Production The Inventory Management System Returns to Supplier (Out) Purchases from Supplier (In) Issues to Production (Out) SUPPLIER STORAGE PRODUCTION Receipts

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Question 1: Cost of Production The Inventory Management System Returns to Supplier (Out) Purchases from Supplier (In) Issues to Production (Out) SUPPLIER STORAGE PRODUCTION Receipts (IN) Issues (OUT) Batch 1 Batch 2 Bacth 3 Batch 4 Returns from Production (In) Figure 1: Inventory Management Cycle

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