Question

Question1: A company has four similar locations in a certain region. The demand for an item is 16 items/day at each location. The carrying cost is $0.20/item/day and the ordering cost is $250/order.

What is the EOQ and total inventory cost at each location.
A proposal has been made to order for all four locations and keep inventory at one location. The ordering cost per order and daily carrying per unit will remain the same. However, 48 units (16 units each) will need to be shipped to each of the three other locations at a transportation cost of $1 per unit. How much will our daily total cost increase or decrease if we accept this proposal?

Answer 1

Answer:

235 in coaching and I have helped me