A company incurs an ordering cost of $90 each time it places an order, regardless of the

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A company incurs an ordering cost of $90 each time it places an order, regardless of the order size. The item’s cost is $25, and the annual carrying charge for the item is 20%. If annual demand for this item is 2500 and the company’s order quantity (Q) is 300, calculate its total annualized cost of inventory.
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Managing Supply Chain and Operations An Integrative Approach

ISBN: 978-0132832403

1st edition

Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb

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