Calculate the total annual inventory costs

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Reference no: EM13814626

A purchasing manager receives the following information from the accounting department:

Cost of placing an order = $180

Unit cost = $75

Annual inventory holding costs = 20%

Annual Demand = 15,500 units

Calculate the following:

a. EOQ

b. avg number of orders

c. total annual inventory costs

d. If 50 orders are placed per year, what is the total annual inventory cost?

Reference no: EM13814626

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