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Inventory costs can be categorized as the costs incurred for holding the inventory, the co

Inventory costs can be categorized as the costs incurred for holding the inventory, the co

Inventory costs can be categorized as the costs incurred for holding the inventory, the costs of ordering and receiving the inventory, and the cost of running out of inventory. costs are the direct and indirect costs of keeping inventory on hand. The number of units in the optimal size order is called the economic ordering quantity (EOQ). Sandberg Company purchases custom-made durable packing boxes to ship its equipment. Each year, Sandberg uses 127, 500 boxes. It costs Sandberg $136 to place each order, and the purchase price is $1.92 per box. An analysis indicates that carrying costs are 25% of the purchase price. Based on the information provided, solve for the values under Sandberg's EOQ policy in the following table.

Abhinav 04-Dec-2019

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