What is the new EOQ and the total annual inventory cost

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Reference no: EM132100196

An assistant manager of Costco is reviewing the costs associated with one of the store's better-selling products. The data available follows. Demand = 6 * 100 units/month Order cost = $400/order Holding cost = $10/unit/year

A. What would be the EOQ and its associated ordering and holding costs?

B. If the holding cost is actually $12 per unit per year and all other information remains the same, what is the new EOQ and the total annual inventory cost?

Reference no: EM132100196

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