Calculate total annual inventory holding cost

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Reference no: EM131146397

Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,600 units. Annual demand is 5,600 heat sinks, the annual inventory holding cost rate is $2 per unit, and the cost to place an order is estimated to be $59.

Calculate average inventory level.

Calculate number of orders placed per year.

Calculate total annual inventory holding cost.

Calculate total annual ordering cost.

Calculate total annual cost.

Reference no: EM131146397

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Calculate total annual inventory holding cost : Custom Computers, Inc. assembles custom home computer systems. The heat sinks needed are bought for $12 each and are ordered in quantities of 1,600 units. Annual demand is 5,600 heat sinks, the annual inventory holding cost rate is $2 per unit, and t..

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