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- Download: https://solutionzip.com/downloads/brakes-inventory/
- Best Bikes produces bicycles and buys brakes from a supplier in Japan. The brake set for one
- bicycle costs $125, and it is $35 to process the order with the supplier. The company
- consistently sells 50 bicycles a week (for 52 weeks of the year) and holds an average of 1 week
- of brake sets in inventory to cover the constant lead time from Japan. The company uses a
- holding/carrying rate of 25%.
- 1. What is the average inventory carrying/holding cost for the brakes? (5 points)
- 2. What is the EOQ for the brakes? (5 points)
- 3. What is the ROP for the brakes? (5 points)
- 4. What is the total annual inventory cost for the brakes? (5 points)
- Download: https://solutionzip.com/downloads/brakes-inventory/
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