Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley

Exercise 4

Suppose Jones Corporation in the above problem determined that its annual inventory carrying cost = 18%.The item unit cost was as follows:
Item 1 = $25.00
Item 2 = $60.00
Item 3 = $5.00
Item 4 = $10.00
Item 5 = $1.00
Compute the dollar values in the above table, determine the inventory carrying cost for each item, and the total annual inventory carrying cost.