Question: Given that purchasing cost C = $1 per can, unit holding cost h = $0.5 per can per year, and ordering cost K = $0.75

Given that purchasing cost C = $1 per can, unit holding cost h = $0.5 per can per year, and ordering cost K = $0.75 per order.

Optimal Order Quantity = ____33_____ [cans/order]. (Round to the nearest integer).

Annual purchasing cost = _____360______ [$/yr].

Question 1

Under the Optimal EOQ quantity, annual ordering cost = ____________ [$/yr] . (Keep 2 decimal places.)

Question 2

Under the Optimal EOQ quantity, annual holding cost = __________ [$/yr]. (Keep 2 decimal places.)

Question 3

Annual total inventory cost (excluding purchasing cost) = ___________ [$/yr]. (Keep 2 decimal places.)

Please answer question 1,2,3.

Thank you

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