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What is the total ordering cost

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Question - Semi annual requirement for materials is 72,000 units. This material cost 200 per unit from X Supplier and requires 5 days lead time from date of order to date of delivery. The ordering cost is 150 per order and carrying cost is 5% of inventory cost per unit. Assuming, 1 year = 360 days. What is the total ordering cost?

a. 10,350

b. 7,350

c. 150

d. cannot be determined

Reference no: EM132855304

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