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Compute the annual ordering cost and annual holding cost

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Reference no: EM132521255

An Inventory Management Decision Model

Question 1. Define the data, uncontrollable inputs, and decision variables that influence your business's total inventory cost - be specific!

Question 2. Develop mathematical functions that compute the annual ordering cost and annual holding cost based on average inventory held throughout the year in order to arrive at a model for total cost. Hint: you have to determine how often you order,which will depend on your space where you hold your inventory - space costs money, so decide wisely!

Question 3. Implement your model on a spreadsheet.

Reference no: EM132521255

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