Solution-Calculate average inventory for order quantities

Calculate average inventory for order quantities

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Reference no: EM132685239

Problem 1: Amazon has an SKU costing $10 and is normally ordered in quantities of 800 units. The annual demand is 6,000 units, carrying cost is 20%, and the cost of placing an order is $100. Calculate the following for order quantities of 800 and 1,500 units.

For
Order Qty = 800
For
Order Qty = 1,500

A Average inventory

B # of orders placed per year

C Annual inventory carrying cost

D Annual ordering cost

E Total Annual cost

Reference no: EM132685239

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Calculate average inventory for order quantities

Reference no: EM132685239

Reference no: EM132685239

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