For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $600. What is the inventory carrying cost per unit per year for this item?
For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $600. What is the inventory carrying cost per unit per year for this item?
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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units, and the total annual inventory (carrying and setup) cost is $600. What is the inventory
carrying cost per unit per year for this item?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37ebb6fd-8ac7-4d89-94b7-7872904416c2%2F59145781-1e2a-4ab9-803d-32fc5e91d732%2Fy3c287i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200
units, and the total annual inventory (carrying and setup) cost is $600. What is the inventory
carrying cost per unit per year for this item?
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