A medical equipment has an average monthly demand is 113 units. Its unit cost is $358. It costs $379 to place an order, and the inventory carrying cost is $38 per unit per year. The equipment requires a 95% of service level with a safety stock requirement of 19 units. What is the equipment's minimum annual total inventory cost?

Answer rating: 100% (QA)

To calculate the equipments minimum annual total inventory cost we need to consider the components o... View the full answer