XYZ is a retailer and sells 115,000 units per year. It purchases from a single supplier. Fixed
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XYZ is a retailer and sells 115,000 units per year. It purchases from a single supplier. Fixed cost per order is $815 and carrying cost is $15 per unit.
Suppose XYZ orders 6,000 units per order from the supplier. Calculate the sum of carrying cost and the shortage cost.
Related Book For
Managing Business Process Flows Principles of Operations Management
ISBN: 978-0136036371
3rd edition
Authors: Ravi Anupindi, Sunil Chopra, Sudhakar Deshmukh, Jan Van Mieg
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