Janis has demand for 40,000 desks p.a. and the purchase price of each desk is GH25. There
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Question:
Janis has demand for 40,000 desks p.a. and the purchase price of each desk is GH25.
There are ordering costs of GH20 for each order placed. Inventory holding costs amount
to 10% p.a. of inventory value.
Calculate the inventory costs p.a. for the following order quantities.
a. 500 units [5 marks]
b. 750 units [5 marks]
c. 1,000 units [5 marks]
d. 1250 units
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