Assume: Demand = 3000 units/year Inventory value = $60/unit
Order placement cost = $400/order Annual carrying...
90.2K
Verified Solution
Link Copied!
Question
General Management
Assume: Demand = 3000 units/year Inventory value = $60/unitOrder placement cost = $400/order Annual carrying costs = $0.30 perdollar held/yr or “30%” If you supplier calls with a special 1Xdiscount of 10%, what would the savings be?
Answer & Explanation
Solved by verified expert
4.2 Ratings (836 Votes)
DEMAND 3000 ORDERING COST 400 HOLDING COST 18 COST PER UNIT 60 EOQ SQRT2 D S H WHERE D DEMAND S ORDERING COST AND H HOLDING COST SQRT2 3000 400 18 365 ANNUAL HOLDING COST
See Answer
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
