What are the annual ordering and carrying costs

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Reference no: EM131235348

An importer operates a small warehouse that has the following annual costs. Wages for purchasing are $45,000, purchasing expenses are $30,000, customs and brokerage costs are $25 per order, the cost of financing the inventory is 8%, storage costs are 6%, and the risk costs are 10%. The average inventory is $250,000, and 5000 orders are placed in a year. What are the annual ordering and carrying costs?

Reference no: EM131235348

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