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When are the holding costs raised?
Holding cost rises while the size of order rises. It is since a higher level of average stock will be kept during the year. Thus holding cost would comprise the cost of warehousing, staff and systems to assists and keep-up inventory, also the cost of insurance, damage, obsolescence, theft and deterioration, even is the cost of money or cash tied up as an example of cost of capital, that is the opportunity cost of investing within inventory.
How do the two alternative process technologies (Chemling and AFU) differ in terms of their scale and automation? What are the implications of this for Rochem?
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In light of today's high standard of living, why do you think that employee theft is such a widespread problem in industry?
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