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Total Value of Inventory Rotation
In our company we buy raw materials for a weekly value of 25k and we typically keep them in inventory for 6 weeks before they go into production.
The production takes 10 weeks and we increase the value with 65k. The final products stay in inventory for 6 weeks before being sold.
1. Draw this situation graph with in the x-axis the time and y-axis cost
2. Calculate the total value of inventory and the yearly production at cost price
3. Determine the rotation and the number of days before the inventory is renewed
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