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PCD Ltd wishes to minimise its inventory costs. Monthly demand for a raw material, APX...

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Finance

PCD Ltd wishes to minimise its inventory costs. Monthly demand for a raw material, APX Revolution, costing $ 12 per unit is 5,000 units. Inventory management costs for this raw material are as follows: Ordering cost: $ 6 per order Holding cost: $ 0.5 per unit per year Calculate the total cost of inventory for the raw material when using the economic order quantity.

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