ones Ltd produces glass display cases for office buildings. It is necessary to set up various machines to undertake their production to fit individual specifications, which is a costly procedure. To minimise set up costs the company would like to produce as long a production run as possible for each component. However, the products are expensive to hold in stock due to store requirements and the potential for breakages. The company sold 4,800 units of display case specification X last year and is expected to sell the same number of units during the current year. The company ran 6 product runs of their machine last year, making 800 windows per run. To hold one unit in stock for the year will cost 20. Each time a machine is set up for use it costs the company 10,000.

What were the order costs for the company last year?

Jones Ltd produces glass display cases for office buildings. It is necessary to set up various machines to undertake their production to fit individual specifications, which is a costly procedure. To minimise set up costs the company would like to produce as long a production run as possible for each component. However, the products are expensive to hold in stock due to store requirements and the potential for breakages. The company sold 4,800 units of display case specification X last year and is expected to sell the same number of units during the current year. The company ran 6 product runs of their machine last year, making 800 windows per run. To hold one unit in stock for the year will cost 20. Each time a machine is set up for use it costs the company 10,000.

What were the holding costs for the company last year?