What is the total annual inventory and purchase cost


Problem: A sport store carries a shoe for men that sell an approximately 6,291 pairs per year. The store purchases the shoes from the manufacturer for $35.1 per pair. The order lead time is 14 days. It costs the store $48 to place and process an order, the annual carrying charge Is 21 percent. Assume EQQ model is appropriate and 360 days a year If the store uses an order quantity of 338 units per order, what is the total annual inventory and purchase cost? Use at least 4 decimal places.

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Finance Basics: What is the total annual inventory and purchase cost
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