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Last year we ordered 87,346 units for the entire year Last year our inventory carrying cost was 28.9% Last year our cost to place an

  • Last year we ordered 87,346 units for the entire year
  • Last year our inventory carrying cost was 28.9%
  • Last year our cost to place an order was $85.99
  • Last year our unit price was $93.66

What would theCOSTTOPLACEANORDERneed to be if:

  • This year our goal is to have a 8.6% inventory reduction (example: a 10% reduction in $100 of inventory becomes $90 in inventory)
  • This year our goal is to have a 6% 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 0.64% (example: reducing an ICC of 25.0% by 0.75% becomes 24.25%)
  • This year our goal is to have a 3.9% 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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