Question: Suppose your company imports 10 000 t shirts from a Chinese whol

Suppose your company imports 10,000 t-shirts from a Chinese wholesaler for $3.25 per shirt. Your business consultant in China charges 25% per shirt along with a delivery order charge of .50 per shirt. Your cost of capital is 12% and all other related charges such as storage, container charges and insurance amount to $3.61 annually. Answer the following concerning Economic Order Quantity.
What is your total carrying cost?
Inventory carrying cost?
Inventory ordering cost?
Total inventory cost?

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  • CreatedJuly 29, 2013
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