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A major equipment producer sells 4 0 0 0 units of its $ 9 0 / unit product per year. Ordering costs are $ 3
A major equipment producer sells units of its $unit product per year. Ordering costs are $ and holding costs are of the product unit value per year. Each items requires square meters for storage product cannot be piled on top of each other and there is currently space in the warehouse. The space available is of size by meters to store the items.
a What lot size should he use?
b What should be the total stocking costs per year?
c Does he need additional space? How much, if any?
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