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Calculate the sum of carrying cost and the shortage cost

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Reference no: EM132804491

Problem 1: XYZ is a retailer and sells 198,000 units per year. It purchases from a single supplier. Fixed cost per order is $982 and carrying cost is $7 per unit. Suppose XYZ orders 5,000 units per order from the supplier. Calculate the sum of carrying cost and the shortage cost.

Reference no: EM132804491

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