An SKU costing $10 is ordered in quantities of 500 units, annual demand is 5200 units, carrying costs are 20%, and the cost of placing an order is $50. Calculate annual inventory carrying cost
is the sum of queue, setup, run, wait and move times at work center.
If the efficiency of the work center in the above question is 115%. What is the rated capacity of the work center?
If the volume is greater than the cost equalization point, the method with the greater variable cost will cost less.
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