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Stephanie Robbins is attempting to perform an inventory analysis on one of her most popular products. Annual demand for this product is? 5,000 units; carrying cost is? $50 per unit per? year; order costs for her company typically run nearly? $30 per? order; and lead time averages 10 days.? (Assume 250 working days per? year.)
?a) What is the optimal size of the production? run?
b) What is the average holding cost per? year?
?c) What is the average setup cost per? year?
?d) What is the total cost per? year, including the cost of the? lights?
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An analysis of the holding costs, including the appropriate annual holding cost rate.
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