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?what is the annual holding cost

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Demand for the BMX Bike at Toby's is 600 units per month. Toby's incurs a fixed order placement, transportation, and receiving cost of $ 3,500 each time an order is placed. Each Bike costs $ 450 and the retailer has a holding cost of 20 percent. Evaluate the number of Bikes that the store manager should order in each replenishment lot.

How many orders per period (Year) will have to be made (N) (under EOQ)?

What is the Annual Holding Cost (under EOQ)?

Reference no: EM132798556

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