What is annual cost of ordering and holding inventory

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Reference no: EM131466269

XYC co. purchases an item. The annual demand for this item is 30000 units. The ordering cost is 80$ per order. The holding cost is 15$ per unit per year.? The lead time for this item is 3 days. Assume 250 working days per year. Find:

a) What is the optimal number of orders per year?

b) What is the annual cost of ordering and holding inventory?

c) What is the re-order point?

Reference no: EM131466269

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