A company with an inventory that has a $5.0 per unit carrying cost. The fixed order cost

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A company with an inventory that has a $5.0 per unit carrying cost. The fixed order cost is $66 per order and the firm orders 7,000 units per month. Calculate the total inventory cost for this company?

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Managerial Economics

ISBN: 978-0324588866

12th edition

Authors: Mark Hirschey

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Posted Date: Mar 22, 2024 05:35 AM

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A company with an inventory that has a $5.0 per unit carrying cost. The fixed order cost

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Expert Answer:

We can calculate the total inventory cost using the Economic Order Quantity EOQ model which helps determine the optimal order quantity to minimize tot... View the full answer

Managerial Economics

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