An assistant manager is reviewing the costs associated with one of the store's better-selling products. The data available follows.
Demand = 400 units/year
Order cost = $25/order
Holding cost = 50¢/unit/year
a. They currently order a one-year supply. What are the total annual ordering cost and holding cost for this order size?
b. What would be the EOQ and its associated ordering and holding costs?

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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 = 400 units/year
Order cost = $25/order
Holding cost = 50¢/unit/year
a. They currently order a one-year supply. What are the total annual ordering cost and holding cost for this order size?
b. What would be the EOQ and its associated ordering and holding costs?

An Assistant Manager Is Reviewing the Costs Associated with One