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What are the current policy order quantity

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Reference no: EM132784976

SportsCheck sells on average 10 soccer balls per day. The balls cost $60 and sell for $90. They are produced and shipped from abroad at a cost of $600 per shipment regardless of the size of the shipment. The inventory carrying cost is estimated to be 20% of the item cost per year. Currently the company orders soccer balls once a month. (Assume 30 days per month.)

Question 1: What are the current policy Order quantity

  1. Annual ordering cost
  2. Annual holding cost

Question 2: What are the economic order quantity

  1. Annual ordering cost
  2. Annual holding cost

Reference no: EM132784976

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