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Target procures Levoit humidifiers from their supplier at $40 per unit. The supplier charges a order processing and transportation cost of $35 per order. Target's
Target procures Levoit humidifiers from their supplier at $40 per unit. The supplier charges a order processing and transportation cost of $35 per order. Target's annual holding cost for the humidifier is 4% of the cost per unit. Target's annual demand for Levoit humidifiers is 700 units. The supplier offers a discount of 10% on the price of $40 if Target orders a minimum of 350 humidifiers. Q9. What is the annual cost of ordering and holding if they increase their order size to 350 units
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