=+3 Assume that the ordering costs are $350 per order and the carrying costs are $40 per annum. What will be the total carrying costs and total ordering costs for order sizes of: 300, 350, 400, 450, 500, 550, 600, 650, 700, 750 and 800. Prepare a graph with order size as the horizontal axis and costs as the vertical axis. Provide separate lines for total holding costs and total ordering costs.

684 Chapter 17: Inventory management, just-in-time and simplified costing methods M17_HORN3377_02_LT_C17.indd 684 2/09/13 4:00 PM