ONLINE Exercise #$1-$ KEY

FALL $2020$

According to the appropriate recommendation, what would be the Total Annual Inventory cost? Also, separately identify, the annual cost of purchasing the inventory, the annual holding cost $($AHC$)$ and annual ordering cost $($AOC$).$

$25.$ AHC$=$

$26.$ AOC$=$

$27.TC=$

$28.$ Therefore, the total annual savings for this one store using our recommendation versus the present lot size of $900,$ would be: