Abc aircraft uses 2000 drill bits annually. each drill bit, Ask an Expert

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ABC Aircraft uses 2,000 drill bits annually. Each drill bit costs $50 and each order ABC places costs $30. The annual carrying rate is 20% of unit cost. ABC has contracted with the supplier of the drill bits to use an order quantity of 200 by doing which they receive a 3% discount on purchase price. Compute the annual total cost

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9379475

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