Minimum cost of ordering and holding inventory

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Reference no: EM132050684

Assume that Fashion Clothiers Inc. uses 1,440,000 yards of material each year. Further, assume that Fashion can order the material at a cost of $2 per yard, plus fixed ordering costs of $100 per order.The firm's carrying cost is 20 percent of the inventory value, at cost. What is Fashion Clothiers' minimum cost of ordering and holding inventory? (Please only enter number. For example, if your answer is $19,825,enter 19825)?

Reference no: EM132050684

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