Calculate the total cost per year to to order and carry

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Reference no: EM13946801

Sock Company sells almost exact 200 units of a product per month on a continuous basis. The product carrying costs are 60 dollars per year and ordering costs are 250 dollars per order. It takes 20 days to receive a shipment after an order is placed and the firm requires a safety stock of 8 days of usage in inventory. Calculate the economic order quantity. Calculate the total cost per year to to order and carry this item. Its supplier has notified john that is John increases its order quantity to 200 they will give it a discount. Calculate the dollar discount that the suppliers will have to give to John to result in a net benefit to the company. Describe a way a firm might lower its inventory on a continues basis

Reference no: EM13946801

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