Write the annual total inventory cost function

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Reference no: EM132231301

An automobile manufacturer uses about 30,000 pairs of bumpers (front bumper and rear bumper) per year, which it orders from a supplier. The bumpers are used at a reasonably steady rate during the 250 working days per year. The annual cost of keeping one pair of bumpers in inventory is $15, and it costs $90 to place an order.

1. Write the annual total inventory cost function based on the above information. (You dont need to solve it.)

2. What is the EOQ?

3. What is the minimum annual total inventory cost that the manufacturer can achieve?

Reference no: EM132231301

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