Question

In a periodic review inventory system how many units are ordered

Answer 1

TC is the total annual inventory cost—to be calculated.

P is the price per unit paid—assume $5 per unit.

D is the total number of units purchased in a year—assume 3,500 units.

H is the holding cost per unit per year—assume $3 per unit per annum.

Answer 2

TC is the total annual inventory cost—to be calculated.

P is the price per unit paid—assume $5 per unit.

D is the total number of units purchased in a year—assume 3,500 units.

H is the holding cost per unit per year—assume $3 per unit per annum.