An organization has an inventory order quantity of 20,000 units and a safety stock of 4,000 units. The cost per unit of inventory is P20, and the carrying cost is 10% of the average value of inventory. The annual inventory carrying cost for the organization is
An organization has an inventory order quantity of 20,000 units and a safety stock of 4,000 units. The cost per unit of inventory is P20, and the carrying cost is 10% of the average value of inventory. The annual inventory carrying cost for the organization is
Chapter15: Managing Short-term Assets
Section: Chapter Questions
Problem 19PROB
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An organization has an inventory order quantity of 20,000 units and a safety stock of 4,000 units. The cost per unit of inventory is P20, and the carrying cost is 10% of the average value of inventory. The annual inventory carrying cost for the organization is
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