The annual demand for a product has been projected at 2,000 units. This demand is assumed to be constant throughout the
Posted: Sun Oct 03, 2021 11:05 am
The annual demand for a product has been projected at 2,000
units. This demand is assumed to be constant throughout the year.
The ordering cost is $20 per order, and the holding cost is 20
percent of the purchase cost. Currently, the purchase cost is $40
per unit. There are 250 working days per year. Whenever an order is
placed, it is known that the entire order will arrive on a truck in
6 days. Currently, the company is ordering 500 units each time an
order is placed. What is the total holding cost for the year using
this policy?
Select one:
A.
$4,000
B.
$8,000
C.
$400
D.
$2,000
E.
none of the above
units. This demand is assumed to be constant throughout the year.
The ordering cost is $20 per order, and the holding cost is 20
percent of the purchase cost. Currently, the purchase cost is $40
per unit. There are 250 working days per year. Whenever an order is
placed, it is known that the entire order will arrive on a truck in
6 days. Currently, the company is ordering 500 units each time an
order is placed. What is the total holding cost for the year using
this policy?
Select one:
A.
$4,000
B.
$8,000
C.
$400
D.
$2,000
E.
none of the above