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Given the following data for a particular inventory item: Demand: 500 units per month Ordering Cost: $30 per order Holding Cost: $1 per unit per
Given the following data for a particular inventory item:
| Demand: | 500 units per month |
| Ordering Cost: | $30 per order |
| Holding Cost: | $1 per unit per year |
| Lead Time: | 1.5 months |
| Price: | $7.99 per unit |
| 360 working days in a year |
For the economic order quantity, what is the total annual ordering cost?
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Introduction to Operations and Supply Chain Management
Authors: Cecil B. Bozarth, Robert B. Handfield
3rd edition
132747324, 978-0132747325
