A central warehouse purchases products for $1,358,695.65 per year. Inventory carrying costs are calculated at 25%...
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A central warehouse purchases products for $1,358,695.65 per year. Inventory carrying costs are calculated at 25% of the average value of inventory, and the cost of placing each order has been set at $ 230. A. Calculate the EOQ (in $). B. If each item costs $5 calculate the EOQ in units. Using Q = EOQ (in units), calculate: C. Average inventory D. Number of orders per year E. Annual ordering costs F. Annual inventory carrying cost G. Total costs A central warehouse purchases products for $1,358,695.65 per year. Inventory carrying costs are calculated at 25% of the average value of inventory, and the cost of placing each order has been set at $ 230. A. Calculate the EOQ (in $). B. If each item costs $5 calculate the EOQ in units. Using Q = EOQ (in units), calculate: C. Average inventory D. Number of orders per year E. Annual ordering costs F. Annual inventory carrying cost G. Total costs
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Related Book For
Business Logistics Supply Chain Management
ISBN: 978-0130661845
5th edition
Authors: Ronald H. Ballou
Posted Date:
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