Assume: Demand = 3000 units/year Inventory value = $60/unit Order placement cost = $400/order Annual carrying...

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General Management

Assume: Demand = 3000 units/year Inventory value = $60/unitOrder placement cost = $400/order Annual carrying costs = $0.30 perdollar held/yr or “30%” If you supplier calls with a special 1Xdiscount of 10%, what would the savings be?

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DEMAND 3000 ORDERING COST 400 HOLDING COST 18 COST PER UNIT 60 EOQ SQRT2 D S H WHERE D DEMAND S ORDERING COST AND H HOLDING COST SQRT2 3000 400 18 365 ANNUAL HOLDING COST See Answer

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Assume: Demand = 3000 units/year Inventory value = $60/unit Order placement cost = $400/order Annual carrying...

90.2K

Verified Solution

Question

General Management

Assume: Demand = 3000 units/year Inventory value = $60/unitOrder placement cost = $400/order Annual carrying costs = $0.30 perdollar held/yr or “30%” If you supplier calls with a special 1Xdiscount of 10%, what would the savings be?

Answer & Explanation Solved by verified expert

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