An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying

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An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying costs are 20%, and the cost of placing an order is $50. Calculate the following:

a. Average inventory.

b. Number of orders placed per year.

c. Annual inventory carrying cost.

d. Annual ordering cost.

e. Annual total cost.

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Introduction To Materials Management

ISBN: 978-9386873248

8th edition

Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen

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Question Posted: Sep 21, 2022 01:04 AM

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An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying

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a b C d e Average inventory Orders per year Invento...View the full answer

Introduction To Materials Management

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