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Houston tires inc. operates a small warehouse that has the following annual costs in 2019: wages for purchasing was $45,000, purchasing expense was $30,000, customs
Houston tires inc. operates a small warehouse that has the following annual costs in 2019: wages for purchasing was $45,000, purchasing expense was $30,000, customs and brokerage costs were $30 per order, the cost of finance the inventory was 8%, storage costs was 7%, and the risk costs was 10%. The average inventory was $250,000, and 6000 orders were placed in the year. What were the annual ordering and carrying costs?
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