EE Co has calculated the following in relation to its inventories. Buffer inventory level 50 units Reorder size 250 items Fixed order costs $50 per order Cost of holding onto one item pa $1.25 per year Annual demand 10,000 items Purchase price $2 per item What are the total inventory related costs for a year (to the nearest whole $)?
EE Co has calculated the following in relation to its inventories. Buffer inventory level 50 units Reorder size 250 items Fixed order costs $50 per order Cost of holding onto one item pa $1.25 per year Annual demand 10,000 items Purchase price $2 per item What are the total inventory related costs for a year (to the nearest whole $)?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 6E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...
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EE Co has calculated the following in relation to its inventories.
Buffer inventory level 50 units
Reorder size 250 items
Fixed order costs $50 per order
Cost of holding onto one item pa $1.25 per year
Annual demand 10,000 items
Purchase price $2 per item
What are the total inventory related costs for a year (to the nearest whole $)?
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