What is the variable maintenance cost

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Question: A warehouse with monthly demand of 115 units establishes an inventory policy with shortages planned by 4 units. The cost of making an order is $ 116 and the annual maintenance cost is $ 13. Missing shortage is known to cost $ 7 annually for each unit. What is the variable maintenance cost if orders are made for 40 units each time?

Reference no: EM131899878

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