How much will the warehouse pay in total annual holding cost

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Reference no: EM132296926

1. Throughout the year a picture frame warehouse has an average of 1,200 units of inventory (high-end picture frames) on hand and pays an annual holding cost of $2.35 per unit per year.

How much will the warehouse pay in total annual holding costs for these items? (Display your answer to the nearest whole number.)

2. A semiconductor manufacturer purchases enormous amounts specialty gases to be used in its manufacturing processes. Its order quantity for argon is 1,100 cylinders, and it places many orders during any given year. This manufacturer holds no safety stock because the supplier is very close and demand for this gas is flat.

Over a year's time (in the long run), what would be the average inventory level for this gas?

Reference no: EM132296926

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