XYZ Company has developed the following data from its Material A: Safety stock 280 Average (normally) daily use 200 Maximum daily use 240 Minimum daily use 180 Economic order quantity 1000 Cost of placing an order $20 Working days per year 250 days Lead time 6 days 1. What is the cost of carrying an inventory per unit per year? 2. What is the average inventory?

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A:

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A: Formula:

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Q: XYZ has developed the following data from its Material A Safety stock Average (normally) daily use…

A: THE ANSWER IS AS BELOW:

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A: The answer is as below:

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A: Below is the solution:-

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Q: Retailers Warehouse (RW) is an independent supplier of household items to department stores. RW…

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Q: Develop a measure of risk to go along with the ordering policy. This measure should be quantifiable.

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A:

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Q: What are some of the operational problems that excessive work-in-process inventory might indicate?

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