Calculate the total annual holding costs


Frederick's Farm Factory (FFF) currently marintains an average inventory valued at $3,400,000. The company estimates its capital cost at 10 percent, its storage cost at 4.5 percent, and its risk cost at 6 percent.

(a) Calculate the annual holding cost rate for FFF

(b) Calculate the total annual holding costs for FFF

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Operation Management: Calculate the total annual holding costs
Reference No:- TGS080760

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