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Bearings purchased from a renowned bearing manufacturer cost $65 each, and the forecast for next year's demand is 1000 units. If cost $25 every time
Bearings purchased from a renowned bearing manufacturer cost $65 each, and the forecast for next year's demand is 1000 units. If cost $25 every time an order is placed for more units, and the storage cost is $20 per unit per year.
a. What quantity should be ordered in each time?
b. What is the total ordering cost for a year?
c. What is the total storage cost for a year?
d. What is the total annual cost?
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