A technology problem has rendered some of the inventory at FFF obsolete. FFF estimates that the risk

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A technology problem has rendered some of the inventory at FFF obsolete. FFF estimates that the risk cost of its inventory is now 10 percent.

(a) Calculate the new annual holding cost rate.

(b) Calculate the new total annual holding costs for FFF.


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Operations Management

ISBN: 978-0470325049

4th edition

Authors: R. Dan Reid, Nada R. Sanders

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