Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 24

A company orders a product from an outside supplier. The annual demand for the product is 75,000 units, and each time an order is placed the company incurs an ordering cost of $100. The company's annual carrying charge is 20% of the item's cost of $150 per unit. What order quantity minimizes the company's total annualized inventory-related costs?