Expected annual usage of a particular raw material is 1,200,000 units, and standard order size is 10,000

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Expected annual usage of a particular raw material is 1,200,000 units, and standard order size is 10,000 units. The invoice cost of each unit is $145, and the cost to place one purchase order is $105. The estimated annual order cost is:

a). $12,000

b). $17,400

c). $12,600

d). $800,000

Related Book For answer-question

Operations and Supply Chain Management

ISBN: 978-0078024023

14th edition

Authors: F. Robert Jacobs, Richard Chase

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Posted Date: Jan 18, 2021 08:38 PM

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Expected annual usage of a particular raw material is 1,200,000 units, and standard order size is 10,000

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Annual order cost 12600 Solution Annual order c... View the full answer

Operations and Supply Chain Management

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