Annual cost including fixed ordering-variable ordering cost

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Reference no: EM132209853

QMart sells 100 bags of pasta and 200 bottles of sauce every week. There are 52 weeks in a year. The unit ordering cost is $5 per bag for pasta and $3 per bottle for sauce. Inventory holding cost is 25% of the product value per unit per year for both products. Fixed ordering cost is $100 per order for pasta and $200 per order for sauce. Calculate the following: The total annual cost including fixed ordering cost, variable ordering cost, and inventory holding cost (for both pasta and sauce)

Reference no: EM132209853

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