ONLINE Exercise #$1$

$$

KEY

FALL $2020$

According to the appropriate

recommendation,

what would

be the T

otal Annual Inventory

c

ost?

Also, separately identify, the annual cost of purchasing the inventory, the annual

holding cost $($AHC$)$ and annual ordering cost $($AOC$).$

$25$

$.$ AHC $=$

$26$

$.$ AOC $=$

$27$

$.$ TC $=$

$28$

$.$