Question
Givens : Annual demand for Product A = 55,000 units The cost to place an order = $375.00 The per unit cost of the item
Givens:
Annual demand for Product A = 55,000 units
The cost to place an order = $375.00
The per unit cost of the item = $800.00
Inventory carrying cost for one item for one year = 25.0% of the item cost
Question: Which order size will provide the lowest total annual inventory cost? Chose the closest answer.
A. 1285 units
B. 85 units
C. 240 units
D. 455 units
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Project Management A Managerial Approach
Authors: Jack R. Meredith, Samuel J. Mantel Jr.
8th edition
470533021, 978-0470533024
