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Calculate the costs to carry items including safety stock

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Reference no: EM132791078

Problem 1: Phoor uses 900 units of a product per year on a continuous basis. The product has carrying costs of P50 per unit per year and order costs of P250 per order. It takes 30 days to receive a shipment after an order is placed and the firm requires a safety stock of 6 days usage in inventory. Calculate the costs to carry the items including safety stock?

Reference no: EM132791078

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