Question
I am having trouble with the formula for these two problems, can anybody help me? ABC Company sells 4,264 chairs a year at an average
I am having trouble with the formula for these two problems, can anybody help me?
ABC Company sells 4,264 chairs a year at an average price per chair of $145. The carrying cost per unit is $21.76. The company orders 260 chairs at a time and has a fixed order cost of $80.5 per order. The chairs are sold out before they are restocked. What are the total carrying costs?
ABC Company sells 2,338 chairs a year at an average price per chair of $185. The carrying cost per unit is $25.67. The company orders 579 chairs at a time and has a fixed order cost of $53.4 per order. The chairs are sold out before they are restocked. What are the total shortage costs?
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