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What is the optimal order quantity for snowmobiles

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Reference no: EM132224049

CY-Sports Store has an annual demand for 2400 snowmobiles. The cost of purchase for each snowmobile is $2000. The ordering cost is estimated to be $250 and holding cost rate is 40% of unit cost.

a. What is the optimal order quantity (EQO) for snowmobiles?

b. What is the annual holding cost?

c. What is the annual ordering cost?

d. What is the total annual inventory cost (TAIC)?

Reference no: EM132224049

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