Illustrate what is the annual cost for ordering item x

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Reference no: EM1377937

Q. The X is a standard item stocked in a organization's inventory of component parts. Each year the industry, on a random basis, uses about 2,000 of item X, which costs $25 each. Storage costs, which include insurance also cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more items X, it costs $10.

a. Whenever item X is ordered, Illustrate what should be the order size?

b. Illustrate what is the annual cost for ordering item X?

c. Illustrate what is the annual cost for storing item X?

The X is a standard item stocked in a organization's inventory of component parts. Each year the industry, on a random basis, uses about 2,000 of item X, which costs $25 each. Storage costs, which include insurance also cost of capital, amount to $5 per unit of average inventory. Every time an order is placed for more items X, it costs $10.

Whenever item X is ordered, Illustrate what should be the order size?

Illustrate what is the annual cost for ordering item X?

Illustrate what is the annual cost for storing item X?

Reference no: EM1377937

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