What are the primary reasons for holding inventory?
Answer to relevant QuestionsWhat are the requirements for effective inventory management? Briefly describe each of the costs associated with inventory. What are some ways in which a company can reduce the need for inventories?A bakery buys flour in 25- pound bags. The bakery uses 1,215 bags a year. Ordering cost is $ 10 per order. Annual carrying cost is $ 75 per bag. a. Determine the economic order quantity. b. What is the average number of bags ...A company manufactures hair dryers. It buys some of the components, but it makes the heating element, which it can produce at the rate of 800 per day. Hair dryers are assembled daily, 250 days a year, at a rate of 300 per ...
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