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Appliance for Less is a local appliance store. It costs this store $20.92 per unit annually for storage, insurance, etc., to hold microwave in their inventory. Sales this year are anticipated to be 796 units. Each order costs $62. The company is using Economic Order Quantity model in placing the orders.
Question 1: It takes approximately 3 day(s) to receive an order after it has been placed. If the store insists on a 6 day(s) safety stock (assume 365-days a year), what should the inventory level be when a new order is placed?
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A company had inventory on November 1 of 13 units at a cost of $17 each. On November 2, they purchased 18 units at $18 each. On November 6, they purchased 14 units at $20 each. On November 8, 16 units were sold for $29 each. Using the LIFO perpetual ..
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