The annual total inventory cost

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Reference no: EM132169763

The annual requirement (R) of a part is 360,000 units. The order cost (S) is $120 per order, the holding rate (k) is 12 percent, and the part cost (c) is $2,500 per unit.

a. The economic order quantity is ______. (Round your answer to the nearest whole unit.)

b. The annual holding cost is $ ______. (Note: When calculating EOQ, round to the nearest whole number and round your final answer to the nearest dollar.)

c. The annual ordering cost is $ _______. (Round your answer to the nearest dollar.)

d. The annual total inventory cost is $ _______. (Round your answer to the nearest dollar.)

Reference no: EM132169763

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