Question: Question from Materials Management 8th edition, Chapter 9 and 10. Please help 9.6. An importer operates a small warehouse that has the following annual costs.
Question from Materials Management 8th edition, Chapter 9 and 10. Please help
9.6. An importer operates a small warehouse that has the following annual costs. Wages for purchasing are $45,000, purchasing expenses are $30,000, customs and brokerage costs are $30 per order, the cost of financing the inventory is 8%, storage costs are 7%, and the risk costs are 10%. The average inventory is $250,000, and 6000 orders are placed in a year. What are the annual ordering and carrying costs? EN 10.5. An SKU has an annual demand of 10,000 units, each costing $15, ordering costs are $80 per order, and the cost of carrying inventory is 25%. Calculate the EOQ in units and then convert to dollars

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