The Allianz Company produces a specialty wood furniture product,and has the following information available concerning its inventory items:

Annual demand is 33,000 packages per year.The purchase price per package is $50.
What is the annual relevant carrying costs?

Question

The Allianz Company produces a specialty wood furniture product,and has the following information available concerning its inventory items:

Annual demand is 33,000 packages per year.The purchase price per package is $50.
What is the annual relevant carrying costs?

Quizplus · Accepted Answer

Unit carrying costs = ($50 × 0.17)+ $6 = $14.5
EOQ = = 1446.99 units
 11ea8a5a_a013_4b32_a19c_0d6de6602efd_TB5540_00_TB5540_00_TB5540_00 Annual relevant carrying costs = (1446.99 / 2)× $14.5 = $10,491

The Allianz Company Produces a Specialty Wood Furniture Product,and Has