The total annual holding and ordering inventory cost is

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Reference no: EM131032008

The demand for a certain perfume bottle at a department store is 30 per day. The store opens 250 days a year. The ordering cost from the manufacturer is estimated at $6 per order and the yearly holding cost at $3 per bottle. Assume a simple EOQ (Economic Order Quantity) inventory model. Round your answers to zero decimal digits.

The economic order quantity is:

The total annual holding and ordering inventory cost is:

If the manager decided to order 200 bottles every time an order is made, the average inventory level is

If the manager decided to order 300 bottles every time an order is made, the length of an inventory order cycle is:

If the store manager decided to order 200 bottles each time an order is made, then the manager will incur an increase in the total annual holding and ordering inventory cost of:

Reference no: EM131032008

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