15. A product has demand of 4,000 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
A. 200 units per order
B. all 4,000 units at one time
C. 1000 units per order
D. 400 units per order
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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. A) $400 B) $800 C) $1200 D) Zero; this is a class C item. E) Cannot be determined because unit price is not known.
Explanation:
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