Describe benefits of holding the raw materials inventories

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Reference no: EM13926968

1. Describe the benefits of holding the following:

a. Raw materials inventories

b. Work-in-process inventories

c. Finished goods inventories

2. Describe the components of carrying costs.

3. How do ordering costs for items purchased externally differ from ordering costs for items manufactured internally within the firm?

4. Describe the nature of stockout costs associated with a stockout in the following:

a. Raw materials inventories

b. Work-in-process inventories

c. Finished goods inventories.

Reference no: EM13926968

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