Question: annual demand is 2 , 5 0 0 drums. The cost per drum is $ 8 0 0 , the annual holding cost for inventory

annual demand is 2,500 drums. The cost per drum is $800, the annual holding cost for inventory is 15% of cost and the administrative costs to place an order are $50.
If Yummy orders drums of flour in quantities of 100 drums (Q=100), what is the annual holding costs?

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