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A hardware store sells paint that has a demand of 12,110 gallons per year. The store purchases the paint from a supplier for 18.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 148 dollars per order. The paint supplier has a lead time of 7 days. What is the total annual inventory and purchase cost if the store uses the on 1,677 gallons per order?

A hardware store sells paint that has a demand of 12,110 gallons per year. The store purchases the paint from a supplier for 18.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 148 dollars per order. The paint supplier has a lead time of 7 days. What is the total annual inventory and purchase cost if the store uses the on 1,677 gallons per order?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A hardware store sells paint that has a demand of 12,110 gallons per year. The store purchases the paint from a supplier for 18.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 148 dollars per order. The paint supplier has a lead time of 7 days. What is the total annual inventory and purchase cost if the store uses the order quantity of 1,677 gallons per order?
Transcribed Image Text:A hardware store sells paint that has a demand of 12,110 gallons per year. The store purchases the paint from a supplier for 18.2 dollars per gallon The unit holding cost per year is 24 percent of the unit purchase cost. while the ordering cost is 148 dollars per order. The paint supplier has a lead time of 7 days. What is the total annual inventory and purchase cost if the store uses the order quantity of 1,677 gallons per order?
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