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| | Holding cost - Wikipedia, the free encyclopedia |
 | | Holding cost also includes the opportunity cost of reduced responsiveness to customers' changing requirements, slowed introduction of improved items, and the inventory's value and direct expenses, since that money could be used for other purposes. | | | If opportunity cost is included, it is reasonable to use one-half the value of stored goods as their holding cost. | | | The most obvious holding costs include rent for the required space; equipment, materials, and labor to operate the space; insurance; security; interest on money invested in the inventory and space, and other direct expenses. |
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http://en.wikipedia.org/wiki/Holding_cost
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| | Supply Chain Management Review - The Real Cost of Holding Inventory |
| | WACC is comprised of the cost of equity and the after-tax cost of debt. | | | Another flaw in the use of the short-term borrowing cost for the inventory cost of capital is that it does not consider the company's "targeted capital structure"—that is, what percentage the company desires in the long term to finance with debt (the sum of short-term and long-term debt) and what percentage to finance by equity. | | | Expressed as a percentage, cost of capital is the average of the required return on equity and the interest rate on debt, weighted by the proportion of equity and debt, respectively, to total capitalization. |
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http://manufacturing.net/scm/article/CA318372.html?nid=2184&rid=1782958173
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| | Economic Order Quantity |
| | Holding cost include the cost of financing the inventory along with the cost of physically maintaining the inventory. | | | The cost of capital is 18% and the physical cost of maintaining his pizza inventory is currently running at 2% of cost. | | | These costs are usually expressed as a percentage of the value of the inventory. |
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http://fozzy.wvstateu.edu/~lewis/handouts/eoq.html
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| | [No title] |
| | The holding cost is charged against the inventory at the end of the period. | | | This is the cost of holding inventory at the end of this period. | | | Note: We generally assume that the holding cost is charged against the inventory which is on hand at the end of the period. |
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http://www.prenhall.com/weiss_qmwin/html/lotsize.htm
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| | Module 5 Notes: Inventory Management |
| | Holding costs may include the cost of financing the inventory investment. | | | The cost of capital is usually expressed as a percentage of the amount invested, such as 20%. | | | The basic criterion in making these decisions is to minimize total inventory costs, such as the cost to carry inventory, the cost to order inventory, and the item cost, subject to meeting demand for the items. |
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http://ruby.fgcu.edu/courses/tharring/10183/m5_notes.htm
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| | Inventory Control Module : Reorder Cost vs. Holding Cost |
| | Holding cost is the dollar value associated with keeping inventory available, such as insurance premiums, storage space, and capital investment. | | | ECONOMIC CHARACTERISTICS -- Reorder Cost & Holding Cost : | | | Reorder (or setup) cost is the dollar value associated with producing or ordering inventory stock, which can include administrative costs, record keeping, and machine preparation. |
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http://links.math.rpi.edu:16080/oldmodules/inventorycontrol/reordercost
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| | [No title] |
| | This is the total cost of both the inventory costs and the unit costs. | | | If the holding cost is a percentage of the unit cost then you must enter the unit cost. | | | This is the cost of holding or carrying one unit of inventory for one time period. |
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http://www.prenhall.com/weiss_dswin/html/inventry.htm
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| | [No title] |
| | Holding or carrying cost is the cost of maintaining inventory, including the cost of space, heat and electricity, insurance and loss of interest if the money were in the bank instead of tied up in inventory. | | | The cost of holding one unit for one year is denoted by H. The constant H is often expressed as a proportion I of the unit price P: H = IP. | | | The total cost function is TC = AIC + APC, annual inventory cost plus annual purchase cost. |
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http://www.uic.edu/classes/idsc/ids355a/973/ntsch09.htm
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| | BOLA : The Management of Inventory: Stock Control Mathematics |
| | The order/acquisition cost (or set-up cost for a make-to-stock situation). | | | The holding cost/unit (Ch) is derived from the average inventory value) multiplied by the cost of carrying the item over the period (one year) expressed as a % of the item cost/value. | | | This mediates the estimated costs of stock-outs with the cost of carrying a safety reserve. |
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http://www.brunel.ac.uk/~bustcfj/bola/operations/stock/maths.html
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| | Lecture 1 Notes |
| | Warehouse cost, taxes and insurance cost, spoilage and obsolescence costs, investment or opportunity cost. | | | The cost of understocking, or the underage cost, c | | | The cost of overstocking, or the overage cost, c |
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http://www.ise.ufl.edu/koustuv/ein4333/LectureNotes.html
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| | An Economic Order Quantity Model For Time Varying Demand |
| | Since the cost of ordering and cost of holding inventory for these companies are not known, for this example, we assume that the cost of holding inventory will be about $1.00 per unit per year and the cost of ordering the inventory will be about $25. | | | The result is that the total cost will be the sum of two functions: one function (holding cost) that is directly proportional to the order quantity and another function (ordering cost) that is inversely proportional to the order quantity. | | | In this paper, a generalized relationship between the demand and the ratio of the ordering cost and the inventory holding cost is derived when the total of the ordering and holding costs is minimized. |
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http://www.ijme.us/issues/spring2001/articles/EconomicOrder.htm
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| | Free Space Holding Cost |
| | is not reflected in the measured cost, and specifically, the refaulting cost component of the measured cost. | | | Then, the opportunity cost is equal to the holding cost divided by the demand. | | | The refault counts are interesting with respect to the accuracy of the refault detection method, but these numbers are not equal to the holding cost. |
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http://www.dcs.gla.ac.uk/~lennons/steve_thesis/node67.html
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| | [No title] |
| | Holding costs are 40% of the cost of the coffee maker. | | | Holding Cost – Building cost, taxes, insurance, etc. | | | Compute Total Cost for EOQ or lowest cost quantity in discount range. |
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http://www.uapb.edu/busmg/classes/purchim.htm
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| | Holding Company Cost Economies in the Global Advertising and Marketing Services Business |
| | A translog cost function is employed wherein a firm’s costs vary according to its scale and two dimensions of the scope of its operations. | | | Estimates indicate that the industry’s long-run cost function is subject to very slight economies of scale, i.e., total variable costs increase less than proportionally as outputs increase. | | | Scope economies arise when cost savings can be realized by a single firm jointly producing several services or jointly serving multiple markets as compared to splitting up the firm into smaller, stand-alone entities, each one producing just one service or serving a single market. |
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http://www.bepress.com/romsjournal/vol2/iss1/art5
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| | KoreaTimes : Cost of Holding FX Reserves Estimated at 1.5 Pct of GDP |
| | The cost of holding current foreign exchange reserves worth $141.5 billion is estimated at 1.5 percent of the nation’s gross domestic product (GDP), according to Citigroup. | | | The group pointed out that even allowing for an added inducement to hold reserves in the hope of lowering foreign borrowing costs for the nation, the current hoard looks excessive relative to both short-term foreign debt and how much the country may be paying to avoid another financial crisis. | | | KoreaTimes : Cost of Holding FX Reserves Estimated at 1.5 Pct of GDP |
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http://times.hankooki.com/lpage/biz/200310/kt2003100816510011910.htm
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| | TheManageMentor - Finance - Corporate Finance and Accounting - Baumol’s Model |
| | The firm incurs a cost known as holding cost for maintaining the cash balance. | | | Hence, it can be said that there is a relationship between the holding cost and the transaction cost. | | | As the demand for cash, ‘C’ increases, the holding cost will also increase and the transaction cost will reduce because of a decline in the number of transactions. |
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http://210.210.18.114/EnlightenmentorAreas/finance/CFA/baumols_model.htm
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| | Inventory Management |
| | Holding cost is a % of the purchasing cost | | | Holding or carrying costs: storage, insurance, investment, pilferage, etc. | | | Total cost = holding cost + ordering cost |
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http://www.uky.edu/~dsianita/300/inventory.html
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| | Greenhouse Effect and Sea Level Rise |
| | Estimating the cost of elevating roads and structures required us to obtain estimates of (1) the area of developed land that would be elevated, (2) the density of structures, and (3) unit cost factors. | | | At the outset, it was clear that it would not be possible to estimate both the cost of holding back the sea and the cost of not holding it back with the resources we were allotted. | | | The low estimates were based on the assumption that unit sand costs remain constant, while the high estimates assume that unit costs increase as the least expensive nearshore deposits are exhausted and it becomes necessary to go farther out to sea or mine lower-quality deposits. |
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http://users.erols.com/jtitus/Holding/NRJ.html
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| | Hold the Holding Costs |
| | If you take the time to educate your personnel on items such as inventory turn and inventory holding cost, you will see their performance improve. | | | The other “unknown” cost includes items such as inventory damage, pilferage and lost opportunity cost. | | | Average monthly inventory equals $1,759,502 multiplied by 5% floor plan cost equals $87,975.10 annual interest cost. |
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http://wdb.wardsauto.com/ar/auto_hold_holding_costs
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| | chapter 12 notes |
| | Example: Given the annual demand for widgets is 10,000 units, the inventory holding cost per unit per year is $15, the cost to place an order is $100, and the price of each widget is $10. | | | Setup costs - costs result when changing over from one fixture type to another, involved with product changes, cost of labor and fixturing. | | | Example: The annual demand for Product X is 60,000 units and the setup cost per unit is $ 50. |
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http://www2.canisius.edu/~fishl/inventorymgt-eoq.html
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| | [No title] |
| | If an EOQ of 77.46 is used, the order and carrying costs calculate to $1,936.49 for a total cost of $3,872.98. | | | Although the cost of computing has decreased considerably, the cost of data acquisition has not decreased in a similar fashion. | | | Calculate total cost using 100 as order quantity: EMBED Equation Based purely upon cost, the decision should be made to order in quantities of 100, for a total cost of $752.63. |
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http://www.umsl.edu/~campbell/252/solutions/chapter12solutions.doc
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| | Appraising Synchronization ON Holding Cost |
| | To meet the objectives of lean, we need to evaluate the cost of failure in terms of both not meeting business objectives and any extra cost due to the need for unplanned or even emergency repairs. | | | Abstract : The quintessential business challenge is to minimize downtime on assets while minimizing the cost of spare and replacement parts inventory. | | | Abstract : Evaluating the cost of outsourcing can be challenging because most organizations cannot fully estimate the financial impact of such a decision. |
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http://technology-evaluation.com/researchit/appraising_synchronization_on_holding_cost_home.html
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| | [No title] |
| | Holding cost: $Ch per item in inventory per year. | | | Purchase cost per unit is constant (no quantity discount). |
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http://engr.smu.edu/~jlk/1360.FA.2003/Lecture11.ppt
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| | Holding Cost |
| | Includes custody costs and any property or income tax, including withholding tax. | | | Annualized expenses associated with maintaining an ongoing position in a security or market. |
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http://riskinstitute.ch/00011690.htm
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| | [No title] |
| | Total cost = order cost + holding cost Find order quantity that gives minimum total cost (use calculus). | | | Obsolescence. ¡ “ ( “ ó u ¨ Inventory Holding Costs ¡ P ¨ Category Investment costs Housing costs Material handling costs Labor cost from extra handling Pilferage, scrap, and obsolescence ¡x P Ì fþ Ì fþ 3Ìÿþ Ì fþD ¨T Cost as a % of Inventory Value 6 - 24% 3 - 10% 1 - 3.5% 3 - 5% 2 - 5% ¡Þ ! F P # P Ì fþ Ì fþ Ì fþ Ì fþ 3Ìÿþ 3Ìÿþ ó v ¨ Ordering Costs ¨W To order and receive product: Supplies. | | | Frequent orders means cost of ordering is large. |
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http://www.umsl.edu/~rbanis/in483f00/ovrheads/pptshows/inva.ppt
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| | [No title] |
| | Impact of inventory costs Pass on some fixed costs with above pricing ¡X ¤ , Hÿþ2 HÿþK , ó + ¨ Lessons From Discounting Schemes ¨ Lot size-based discounts increase lot size and cycle inventory in the SC. | | | Coordinated lot size: 9,165 (6,324); Retailer cost = $4,059 ($3,795); Supplier cost = $5,106 ($6,009); Supply chain cost = $9,165 ($9,804). | | | In reality, each stage has a separate owner and considers its own costs in an effort to maximize its own profit. |
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http://www.isye.gatech.edu/~isye6203/chapter7.ppt
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| | [No title] |
| | per year) P = unit cost of an item CH is often given as a % of unit cost (e.g. | | | Whenever the inventory level is 0, order Q items Objective: Choose a Q that will minimize annual ordering and holding costs. ¡ ¦ P # ª § ó ¨ EOQ Parameters ¨Y CO = ordering cost (fixed cost to place an order) CH = holding cost per item per unit of time (e.g. |
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http://www.caam.rice.edu/~timredl/caam378/LectureSlides/09-13.ppt
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| | [No title] |
| | The second differential of the Total Annual cost equation would yield the minimum order quantity. | | | The aim of the process is to determine the OPTIMUM batch or quantity size to order attached to the minimum cost. |
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http://cwis.livjm.ac.uk/bus/busrmccl/cima2/lect9.ppt
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| | Narns vs. Centauri - Game 1 - Mechanics |
| | Morden rotates: reduce cost of cards requiring Shadow Marks | | | Sheridan sponsors Bester (cost 10): I-5 / P-12 | | | Catherine Sakai rotates (cost 5); finds location, places in hand |
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http://personalweb.smcvt.edu/keverist/B5CCG/B5TurnsGame3.htm
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| | PRACTICE PROBLEMS OF EOQ FOR MGT 335 |
| | Cost 272.17 18.37 8.51 102.06 9185.59 4/B> Costs ---------------------------------------- Demand Ordering Holding Shortage 4000 400 45 65 Q S Cost Max Inventory # of Cycles 347 141 $9225.85 347 - 141 = 206 4000/347 = 11.57 = 12 cycles | | | 1 Given the holding cost of 10 cents per unit, price unit of $1, demand per year of 1380 units Calculate EOQ. |
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http://www.courses.cmich.edu/shaha1s/PRAC335.HTML
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| | [No title] |
| | ß Í Î Ð Ñ × ÿ ? % % ðÿ 1 $ c I i º Ü ¡ ¼ 3Ö iñ —Ä ä/DIXpÅ9‘è¥{©Õ¦.¢b•©ïz=gSº>ò%"Qø qå Ë Ä° ï q @ ¬ ð vú ðø ¢ ð È Ó ðN ¦ÿ Å
¿ ¿ À Ë1 ÿ ? ð Ïw K¾ ðz ¨ Total cost (dollars) ¡ ª ¦ ñ àhhÐÐ88 ðv ðF ð 2 ð É ð ð 2 ð ¢ ð Ê Ã ðH Ï
¿ ¿ À Ë1 ÿ ? ð Ë ¶ r ð— ¨ Purchase quantity (Q) ¡4 ª ¦ ñ àhhÐÐ88 ð ¢ ð Ë Ã ðH `Û
¿ ¿ À Ë1 ÿ ? ð 2 ô ð ¨ 0 100 200 300 ¡ ª ¦$ õ à Í ¢ I hhÐÐ88 ðd B ð Ì £ ð |
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http://www2.bc.edu/~meile/Inventory.ppt
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| | [No title] |
| | Quantity Holding Cost Rate (%/Week) Other Holding Cost (/Week) Lead Time (Week) Lot Size Total Profit (/Week) Inventory Cost (/Week) Mean Inventory Level Maximum Inventory (/cycle) Reorder Point Cycle Time (Week) Mean Residence Time (Week) Optimum Lot Size Optimum Total Profit (/Week) Optimum Inventory Cost (/Week) Optimum Mean Inventory" Optimum Maximum Inventory (/cycle) Optimum Reorder Point Optimum Cycle Time (Week) Optimum Residence Time (Week) Ex1 Inv2 Fin Replenishment Rate (/Week) Ex2 Inv3 Fin/BO Backorder Cost (/Week) Fill Rate (%) Mean Backorder Level Max. | | | Shortage (/cycle) Optimum Backorder Time (Week) Ex3 Inf/BO Inv4_1 Inv4_2 Inf/LS Lost Sale Cost (/unit) Lost Sales Rate(/Week) Optimum Lost Sales Rate(/Week) Ex4 A Ex4 B Inv5 Inv6_1 Inv6_2 Fin/LS Ex6 A Ex6 B Ex 5 Inv7_1 Inv7_2 Inv7_3 Inf/PB Best Breaks 1 Breaks 2 Breaks 3 Nonlinear Model Name: Mult1 Type: NLP1 Goal: Max Solver: Excel Solver Sens.: Side: Yes No Nonlinear Variables Values: Lower Bounds: Upper Bounds: Linear Obj. |
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http://www.me.utexas.edu/~jensen/ORMM/frontpage/demo_xls/invdem.xls
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| | BoaterEd Forums - Cost/Value Holding Tank |
| | Does anyone have a ball park range of cost to install new head and holding tank? | | | But on a 258 Vista it shouldn't impact the value at all. | | | I had planned on keeping the boat for a year or two but don't want to get into something that is not marketable. |
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http://www.boatered.com/forum/topic.asp?TOPIC_ID=65406
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| | incorporation Find it here at incorpusa.com |
| | Low cost incorporation in Florida, California, Delaware, New York, Nevada, New Jersey and Illinois. | | | Price includes state and attorney filing fees plus more. | | | Quick Inc is the company entrepreneurs trust for incorporation. |
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http://www.IncorpUSA.com
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| | From Fluid Relaxations to Practical Algorithms for Job Shop Scheduling: the Holding Cost Objective - Bertsimas, ... |
| | Abstract: We design an algorithm for the job shop scheduling problem with the objective of minimizing the total holding cost by appropriately rounding an optimal solution to a fluid relaxation in which we replace discrete jobs with the flow of a continuous fluid. | | | From Fluid Relaxations to Practical Algorithms for Job Shop Scheduling: the Holding Cost Objective (1999) | | | From Fluid Relaxations to Practical Algorithms for Job Shop Scheduling: the Holding Cost Objective - Bertsimas, Sethuraman (ResearchIndex) |
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http://citeseer.lcs.mit.edu/bertsimas99from.html
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| | [No title] |
| | Therefore length of a cycle = q / D Average inventory = q / 2 each cycle Holding cost/year = (holding cost/cycle)(cycles/year) Holding cost/cycle = h. |
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http://www.compapp.dcu.ie/~lkillen/teach/ca427inventory.notes.doc
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