Transcription of Inventory Management Example Problems with Solutions
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Inventory Management Example Problems with Solutions
UMass LowellCollege of SloanInventory Management Example Problems with auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demandis approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annualholding cost is 30 percent of the battery s value. It costs approximately $20 to place an order (managerialand clerical costs). The supplier currently orders 100 batteries per the ordering, holding, and total Inventory costs for the current order the economic order quantity (EOQ).
College of Management 63.371 T. Sloan Inventory Management Example Problems with Solutions 1. An auto parts supplier sells Hardy-brand batteries to car dealers and auto mechanics. The annual demand is approximately 1,200 batteries. The supplier pays $28 for each battery and estimates that the annual holding cost is 30 percent of the battery’s ...
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