Estimate of inventory holding cost per year in percentage

Assignment Help Operation Management

Reference no: EM132193521

Firm BlueMountain Inc. carries product A as inventory. The total warehousing cost is $75,303 in 2014. Due to obsolescence, this inventory lost its market value by $22,000 in 2014. The manager estimated that the average inventory level for product A is 1,077 units during 2014. The unit purchasing cost of A is $500. In addition, the risk free interest rate is 3% per year. What is your estimate of the inventory holding cost per year in percentage? Ignore the percentage sign, round to the nearest integer. For example, if your answer is 34.56%, fill in 35; if your answer is 76.43%, fill in 76.

Reference no: EM132193521

Questions Cloud

Why is that an important message-lesson : You will write a critical essay centered on this text. In this essay, your purpose will be to recognize and discuss the key meanings or lessons you take.

Multiple hurdle approach or compensatory model : When and why you would choose to use a multiple hurdle approach or a compensatory model. Thus, explaining how they can be combined.

What did you learn about yourself from your success : What did you learn about yourself from your success? Think of an experience you had in school that did not go as you had wanted, and describe it.

Have organizational initiatives created the problem : Analyze and Prioritize Data: Finally, you will analyze and prioritize the information and compare with the needs of the organization.

Estimate of inventory holding cost per year in percentage : In addition, the risk free interest rate is 3% per year. What is your estimate of the inventory holding cost per year in percentage?

Discuss three types of professional portfolios : discuss three types of professional portfolios that may come from completing an internship.

What sort of feedback did you receive from your instructor : What sort of feedback did you receive from your instructor? Share that feedback to whatever degree you are comfortable.

Determine a case violates the establishment clause : Students have requested that they be permitted to publicly perform and/or lead prayers before or during CSUN sporting events.

Often one of greatest sources of cost for companies : The supply chain is often one of the greatest sources of cost for companies and consequently it often becomes a major target of cost reduction.

User Account

All Pages