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Last year we ordered 82,192 units for the entire year Last year our inventory carrying cost was 25.4% Last year our cost to place an

  • Last year we ordered 82,192 units for the entire year
  • Last year our inventory carrying cost was 25.4%
  • Last year our cost to place an order was $44.79
  • Last year our unit price was $155.36

What would the COST TO PLACE AN ORDER need to be if:

  • This year our goal is to have a 6.8% inventory reduction (example: a 10% reduction in $100 of inventory becomes $90 in inventory)
  • This year our goal is to have a 7.1% increase in sales (example: a 10% increase in sales of 100 units becomes 110 units)
  • This year our goal is to reduce inventory carrying cost by 0.65% (example: reducing an ICC of 25.0% by 0.75% becomes 24.25%)
  • This year our goal is to have a 5.3% reduction in unit price (example: a 10% reduction in a $10 unit cost becomes a $9 unit price)
  • ALL goals are achieved

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