what are the total inventory related costs for a year?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
icon
Related questions
Question

EE Co has calculated the following in relation to its inventories.

buffer inventory level 50 units

Reorder size     250 units

Fixed order costs        $50 per order

Cost of holding onto one item pa  $1.25 per year

annual Demand   10,00 units

purchase price    $2 per item

what are the total inventory related costs for a year?

 

Expert Solution
steps

Step by step

Solved in 3 steps with 5 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning