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How much is the total ordering costs

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Problem 1: Assuming that Charlene Corporation has an optimal order quantity of 5,000. The company desires a safety stock of 250 units. A 7-day lead time is needed for delivery. Annual inventory carrying costs equal 20% of the average inventory level. The company pays P5 per unit to buy the product, which it sells for P8. The company pays P100 to place a detailed order, and the monthly demand for the product is 5,000 units. How much is the total ordering costs?

Reference no: EM132788101

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