Solved: What is the average cost to hold the bookshelf in inventory, Supply Chain Management

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What is the average cost to hold the bookshelf in inventory

Assignment:

Sam's Furniture Store sells living room furnitures in the city of Bridgewater. For a particualar bookshelf, the holding cost is 16% per year. The company sells it for $75 and make a profit of $25 on each bookshelf. The annual inventory turns are 9.5. The shipping cost is $450 each time Sam purchases from the manufacturer. What is the average cost to hold the bookshelf in inventory (in $) for Sam?

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Supply Chain Management: What is the average cost to hold the bookshelf in inventory

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