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Operations Management
A particular branch of ABC Co. is experiencing some inventory control problems. The manager currently orders 5,000 units four times each year to handle annual demand of 20,000 units. Each order costs P15 and each unit costs P1.50 to carry. The branch maintains a safety stock of 200 units. IF proper management is applied, how much will be the inventory cost savings on the particular branch?

A particular branch of ABC Co. is experiencing some inventory control problems. The manager currently orders 5,000 units four times each year to handle annual demand of 20,000 units. Each order costs P15 and each unit costs P1.50 to carry. The branch maintains a safety stock of 200 units. IF proper management is applied, how much will be the inventory cost savings on the particular branch?

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 particular branch of ABC Co. is experiencing some inventory control problems. The manager currently orders 5,000 units four times each year to handle annual demand of 20,000 units. Each order costs P15 and each unit costs P1.50 to carry. The branch maintains a safety stock of 200 units. IF proper management is applied, how much will be the inventory cost savings on the particular branch?

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