How much is total annual costs of ordering-holding inventory

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Steve's Tire and Lube (inventory policy) A continuous review policy is used for all car parts and supplies, but Steve believes this system may require too much time to maintain for all inventory items. Steve has determined that to call to supplier, pay for transportation, and put a shipment away costs approximately $40. The small stock room doesn't require special equipment or personnel.The annual holding costs are 30% of unit cost. Delivery orders take about one week from the local supplier. HOW MUCH IS THE TOTAL ANNUAL COSTS OF ORDERING AND HOLDING INVENTORY USING THE CONTINUOUS REVIEW SYSTEM?

Reference no: EM131143004

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