What is the total annual cost of managing the inventory with this policy.

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Dicount-Mart, a major East Coast retailer,wants to determine the economic order quantity for its halogen lamps. it currently buys all halogen lamps from Speciality light manufacturers, in Atlanta. Annual demand is 2,200 lamps,ordering cost per order is $0.75, carrying cost per lamp is $20. As part of it's new JIT program, Discount-Mart has signed a long term contract with speciality lighting and will place orders electronically for its halogen lamps.
What is the total annual cost of managing the inventory with this policy.

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