Differential Costs of Inventory Policy: A review of the inventories of a company indicates the following cost
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Differential Costs of Inventory Policy: A review of the inventories of a company indicates the following cost data for a given item:
Required: Show the differential costs that would be included in an EOQ model.
Transcribed Image Text:
Invoice price Cost to arrange for the shipment Permit fees for shipping Inventory tax Insurance on shipments Insurance on inventory Warehouse rental Stockout costs Cost of capital Unloading-per order $102.25 per unit 21.45 per order 201.65 per truckload 2% of the invoice price $ 1.50 per unit 2.80 per unit 985.00 per month 122.00 per order 25% $ 80.20 per order
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