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Given the following data for particular inventory item:
Your usage of a given inventory is 500 units per week. The ordering cost is $40 per order and the carrying cost are one cent per unit each week. It takes three weeks to receive an order, and the price of the item itself is 50 cents per unit.
1. What is the economic order quantity for this item?
2. What is the reorder point?
3. What is average inventory level?
4. What are the average weekly ordering cost?
5. What are the weekly carrying cost?
6. What are average weekly total cost excluding the cost of the inventory item?
7. What are average weekly total cost including the cost of the inventory item?
8. What is the reorder point if safety stock is kept at 250 units?
Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company's cost of..
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The forecast is 80 units for each of the first two period
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