Problem 11-21 (Algo) Item X is a standard item stocked in a company's inventory of component parts. Each year the firm,

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Problem 11 21 Algo Item X Is A Standard Item Stocked In A Company S Inventory Of Component Parts Each Year The Firm 1 (29.43 KiB) Viewed 46 times

Problem 11-21 (Algo) Item X is a standard item stocked in a company's inventory of component parts. Each year the firm, on a random basis, uses about 2,600 of item X, which costs $25 each. Storage costs, which include insurance and cost of capital, amount to $6 per unit of average inventory. Every time an order is placed for more of item X, it costs $18. a. Whenever item X is ordered, what should the order size be? (Round your answer to the nearest whole number.) Order size b. What is the annual cost for ordering item X? (Round your answer to 2 decimal places. Round your intermediate calculation.) Ordering cost c. What is the annual cost for storing item X? (Round your answer to 2 decimal places. Round your intermediate calculation.) Holding cost Chea