Problem 1: The monthly demand of DEF's sole product is 30,000 cases. Based on data analysis, the carrying cost per case is P30 per year. For each order, ABC spends an average of P200 in worker's...

Problem 1:<br>The monthly demand of DEF's sole product is 30,000<br>cases. Based on data analysis, the carrying cost per case<br>is P30 per year. For each order, ABC spends an average of<br>P200 in worker's wages, P700 in freight and P550 in other<br>expenses.<br>

Extracted text: Problem 1: The monthly demand of DEF's sole product is 30,000 cases. Based on data analysis, the carrying cost per case is P30 per year. For each order, ABC spends an average of P200 in worker's wages, P700 in freight and P550 in other expenses.

If ABC would like follow the EOQ<br>model but also maintain a safety<br>stock of 10,000 cases, how much<br>would the total annual inventory-<br>related costs be?<br>

Extracted text: If ABC would like follow the EOQ model but also maintain a safety stock of 10,000 cases, how much would the total annual inventory- related costs be?

Jun 09, 2022

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Problem 1: The monthly demand of DEF's sole product is 30,000 cases. Based on data analysis, the carrying cost per case is P30 per year. For each order, ABC spends an average of P200 in worker's...

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