Question: Given the following data: Monthly Demand = 1 3 0 0 units Ordering Cost = $ 1 5 per order Holding Cost = $ 4

Given the following data:
Monthly Demand =1300 units
Ordering Cost = $15 per order
Holding Cost = $4/unit per year
EOQ =342
Lead Time =4 days
Customer Service Level =97.5%
What is the total annual inventory holding cost and total annual variable cost?
Given the following data:
Monthly Demand =1300 units
Ordering Cost = $15 per order
Holding Cost = $4/unit per year
EOQ =342
Lead Time =4 days
Customer Service Level =97.5%
What is the total annual inventory holding cost and total annual variable cost?
Annual Holding Cost = $684; Annual Total Variable Cost = $684
Annual Holding Cost = $7,260; Annual Total Variable Cost = $14,520
Annual Holding Cost = $0; Annual Total Variable Cost = $880
Annual Holding Cost = $968; Annual Total Variable Cost = $1,936
Annual Holding Cost = $684; Annual Total Variable Cost = $1,368

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