Solved: It is estimated that it will cost 10 to hold one unit in, Business Management

It is estimated that it will cost 10 to hold one unit in

A company can produce a product 50/day. The demand however is only 20 per day. The manager decides a lot size of 1,000 units. It is estimated that it will cost $10 to hold one unit in inventory for one year. What will be the average inventory holding cost?

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