A product has a demand of 4000 units per year. The ordering cost is $20 and the holding cost is $4 per unit per year. The EOQ model is used. What is the minimum total cost (cost minimization solution) for this product if only ordering and holding costs are considered?

Note : Choose the option closest to your answer.

	$400
	Zero; This is a class C item.
	It cannot be determined because the unit price is unknown.
	$1200
	$800

Answer rating: 100% (QA)

To find the minimum total cost using the Economic Order Quantity ... View the full answer