Company save for total inventory costs

Assignment Help Operation Management

Reference no: EM133959502

Question

Assume it costs $20 to place an order for a product that your company uses. You are currently ordering in lots of 400 units of this product and your company needs 36,000 units of this product each year. It cost $4 to hold one unit of this product per year of inventory.

How much can your company save for the total inventory costs if they adapt the EOQ model?

Reference no: EM133959502

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