Fredericks farm factory fff currently maintains an average, Operation Management

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Fredericks farm factory fff currently maintains an average

Question: Frederick's Farm Factory (FFF) currently maintains an average inventory valued at $3,400,000. The company estimates its capital cost at 12 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: Fredericks farm factory fff currently maintains an average

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