You are the purchasing manager and you buy a raw material having the following information: Annual demand
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Question:
You are the purchasing manager and you buy a raw material having the following information:
- Annual demand = 900 units
- Fixed order quantity = 260 units
- Order cost = $100 / order
- Inventory carrying cost = 25%
- Per unit purchase cost = $10 / unit
- Safety stock = 30
On average, what is the dollar value of inventory that you will have for this material?
Related Book For
Auditing The Art and Science of Assurance Engagements
ISBN: 978-0133405507
13th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
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