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ow much would the minimum total annual inventory-related costs that JJ would incur if it applies the reorder point and EOQ models? Use 365 days.

ow much would the minimum total annual inventory-related costs that JJ would incur if it applies the reorder point and EOQ models? Use 365 days.

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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JJ Corporation resells one product to a small isolated community. It sells an average of 60 sacks, but may sell as low as 20 sacks and as high as 75 sacks each day. The suppliers charges 500 per sack and an additional fixed cost of 1,300 for deliveries. It takes an average of ten days for orders to arrive. Investment in inventory are funded thru debt and equity at a weighted average cost of capital of 14%. How much would the minimum total annual inventory-related costs that JJ would incur if it applies the reorder point and EOQ models? Use 365 days.

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