Calculate the total annual cost of the system

Reference no: EM131027822

ABC Company has a demand for 2000 units each year. The cost of each unit is $100. It costs ABC $200 to place an order and $4 to carry a unit in the stock pear year. Further, the supplier needs week and a half to deliver their order. Assume 50 weeks to a year.

a. Calculate the total annual cost of the system.

Reference no: EM131027822

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