Annual total ordering cost and annual total holding cost

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Reference no: EM131780513

Consider a product satisfying the EOQ assumptions. The demand is 12000 units /year. Purchase price is $50 /unit. Ordering cost is $180 per order, and holding cost is $12.0 /unit/year.

a) To minimize the annual total inventory cost, how many units should you order each time? Round up your answer to the nearest integer if needed.

b) What is the annual total ordering cost and annual total holding cost?

c) What is the annual total cost (annual total inventory cost+total purchasing cost) using the ordering quantity you found in (a)?

Reference no: EM131780513

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