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A manufacturing company produces seasonal products. It follows a level production strategy. Its cost of holding inventory is $5/ unit-quarter. It currently has 1,000 units
A manufacturing company produces seasonal products. It follows a level production strategy. Its cost of holding inventory is $5/ unit-quarter. It currently has 1,000 units at the beginning of Quarter 1, and wishes to end up with an inventory of 2,000 units at the end of Quarter 4: If you have a cost of capital of 8%, cost of storage of 12%, cost of risk of 5%, and an annual cost of sales of 2.3 million. What would be the total amount of annual savings if, through more efficient inventory management, you could increase inventory turns to 15 turns
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