CL_06_Mfg_vs_InvCC

CL_06_Mfg_vs_InvCC - $120,000 $120,000 ($40 x 3 x 1000)...

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PROBLEM: MANUFACTURING vs INVENTORY CARRYING COST PROBLEM Should Manufacturer Changeover (i.e., Produce) Each Tile Size 1 or 2 Times Per Year Annual Manufacturing Costs vs. Inventory Carrying Costs Fixed Mfg Costs (Changeover Costs) $6,000 $12,000 ($2000 x 3) ($2000 x 6) Variable Mfg Costs
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Unformatted text preview: $120,000 $120,000 ($40 x 3 x 1000) ($40 x 3 x 1000) Mfg Total Costs $126,000 $132,000 INVENTORY CARRYING COST $15,000 $7,500 ($10 x 3 x 500) ($10 x 3 x 250) TOTAL ANNUAL MFG + INV CC $141,000 $139,500 PRODUCE EACH SIZE ONCE PER YEAR PRODUCE EACH SIZE TWICE PER YEAR...
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This note was uploaded on 02/26/2012 for the course GSC 115 taught by Professor Miller during the Fall '11 term at Rider.

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