What would be the annual holding cost for the product

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A toy making company has a demand of its main product of 19,500 units/year and every time it places and order, it cost the company $25/order. The owner of the company has been told by the accounting department that it cost the company about $4/units per year to carry the items in inventory.

a. What should be the optimal lot size for this product?

b. What is the expected annual ordering cost for the product?

c. What would be the annual holding cost for the product?

d. What is the total annual cost for the company?

Reference no: EM131767613

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