Question: c ) Caravan Engineering uses the following formulas to determine the annual ordering costs and annual holding costs for its temperature probe casings: Annual Ordering
c Caravan Engineering uses the following formulas to determine the annual ordering costs and annual holding costs for its temperature probe casings:
Annual Ordering Costs DQo S and Annual Holding Costs Qo H
where Qo units is the order quantity, D is the annual demand, S is the ordering cost, and H is the annual holding cost per unit. The firms annual demand is two hundred units, the ordering cost is eighteen dollars, and the annual holding cost is two dollars per unit. The firms inventory manager wants to calculate the annual ordering costs, and the annual holding costs.
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