CALCULATING INVENTORY CARRYING CHARGESPROBLEM 3 Using the following data, calculate (1) the total inventory carrying charge and (2) the per pound inventory carrying charge for inventory that is used as safety stock Item chemical raw material 480,000 pounds of this raw material used each year Cost $11 50 per pound Two months worth of annual demand to be held as safety stock Inventory carrying charge is 21 annually Total carrying charges for this safety stock Per pound carrying charge for this safety stock

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Question: CALCULATING INVENTORY CARRYING CHARGESPROBLEM 3 Using the following data, calculate (1) the total inventory carrying charge and (2) the per pound inventory carrying charge for

CALCULATING INVENTORY CARRYING CHARGESPROBLEM 3 Using the following data, calculate (1) the total inventory carrying charge and (2) the per pound inventory carrying charge for inventory that is used as safety stock:

Item: chemical raw material
480,000 pounds of this raw material used each year
Cost: $11.50 per pound
Two months worth of annual demand to be held as safety stock
Inventory carrying charge is 21% annually

Total carrying charges for this safety stock:

Per pound carrying charge for this safety stock:

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