Calculate the annual inventory costs for the following data.
$\begin{array}{ll}
\text {Order quantity } & =400\text { units}\
\text {Annual demand } & =12,500\text { units }\
\text {Unit purchase cost } &=50\
\text { Fixed cost of placing an order} &=75\
\text { Percentage cost of holding one unit in inventory for a year } &=20\%\
\end{array}$

Question

Calculate the annual inventory costs for the following data.
 $\begin{array}{ll}
  \text {Order quantity  } & =400\text {   units}\
 \text {Annual demand  } & =12,500\text {  units }\
 \text {Unit purchase cost  } &=50\
 \text {  Fixed cost of placing an order} &=75\
 \text { Percentage cost of holding one unit in inventory for a year } &=20\%\
\end{array}$

Quizplus · Accepted Answer

The Answer of Calculate the annual inventory costs for the following data.
 $\begin{array}{ll}
  \text {Order quantity  } & =400\text {   units}\
 \text {Annual demand  } & =12,500\text {  units }\
 \text {Unit purchase cost  } &=50\
 \text {  Fixed cost of placing an order} &=75\
 \text { Percentage cost of holding one unit in inventory for a year } &=20\%\
\end{array}$

Calculate the Annual Inventory Costs for the Following Data