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Author Question: A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unit ... (Read 147 times)

Garrulous

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on: Dec 3, 2019

Question 1

A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unit per year. The EOQ model is appropriate. The cost-minimizing solution for this product will cost ________ per year in total annual inventory costs.
◦ $400
◦ $1200
◦ $800
◦ Zero; this is a class C item.
◦ Cannot be determined because unit price is not known.

Question 2

A product has demand of 4000 units per year. Ordering cost is $20 and holding cost is $4 per unit per year. The cost-minimizing solution for this product is to order
◦ 10 times per year.
◦ all 4000 units at one time.
◦ every 20 days.
◦ 200 units per order.
◦ none of the above.
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Marked as best answer by Garrulous on Dec 3, 2019

yotaSR5

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Reply #1 on: Dec 3, 2019
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Garrulous

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Reply 2 on: Dec 3, 2019
Excellent

Viet Thy

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Reply 3 on: Yesterday
Wow, this really help

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