An assistant manager is reviewing the costs associated with one of the store's better-selling products.The data available follows:
Demand = 4000 units/year
Order cost = $50/order
Holding cost = $2/unit/year
a.The current order quantity is 400 units per order.What is the total annual ordering cost and holding cost for this order size?
b.What would be the EOQ and its associated ordering and holding cost?

Question

Quizplus · Accepted Answer

The Answer of An assistant manager is reviewing the costs associated with one of the store's better-selling products.The data available follows:
Demand = 4000 units/year
Order cost = $50/order
Holding cost = $2/unit/year
a.The current order quantity is 400 units per order.What is the total annual ordering cost and holding cost for this order size?
b.What would be the EOQ and its associated ordering and holding cost?

An Assistant Manager Is Reviewing the Costs Associated with One