Question: Cost per Unit Average Inventory (units) Cost per Order Carrying Cost Number of orders per year S150 2,000 $2,500 5% 13 2. Using the cost

Cost per Unit Average Inventory (units) Cost per

Cost per Unit Average Inventory (units) Cost per Order Carrying Cost Number of orders per year S150 2,000 $2,500 5% 13 2. Using the cost information (cost per order, cost per unit, carrying cost percentage) from Question 1, fill in the empty boxes. Which order period optimizes the system costs? Order Average Total Annual Total Annual Total Annual Period Orders Inventory Order Inventory Carrying Cost per (Units) Cost Cost Year 2 weeks 26 1,000 1 month 12 2,167 1.5 months 8 3.250 2 months 6 4.333 3 months 4 6,500 4 months 3 8,667 6 months 2 13,000

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