Question: Please answer correctly. I have used multiple questions on this question. 5 Applied Technologies Inc. wishes to develop an optimal inventory policy for its main
Please answer correctly. I have used multiple questions on this question. 5
Applied Technologies Inc. wishes to develop an optimal inventory policy for its main product, namely, disk drives. After some research, the materials manager at Applied Technologies establishes that the assumptions of the basic EOQ model are valid for her company and this product. She also determines the following parameters. A= Annual demand =500 disk drives per year. N= Number of working days in a years at Applied Tech =250 days per year H= Holding Cost per year for each disk drive =$10/ drive / year S= Ordering Cost per order =$1 Based on the information given above and following the optimal ordering policy for its disk drives, the annual holding costs for the company would be equal to: $100 per year $1,000 per year $50 per year $500/ year All of the above
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