Explain why do inventories cost so much to maintain

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Q. A work center containing 4 machines of equal capability operates 2 shifts per day 5 days per week (8 hours per shift). This is effective capacity. If work center has a system efficiency of 95%, illustrate what is expected output in hours per week?

Q. Explain why do inventories cost so much to maintain? Give some examples of explain how cost is associated with carrying an inventory. Is re anything we can do to lower this cost and if so, illustrate what?

Reference no: EM1375174

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