Calculate total annual inventory holding cost Calculate tota

Calculate total annual inventory holding cost. Calculate total annual ordering cost.

Solution

Total inventory caost C(Q/2) +F(D/Q)

wehre \'Q\' is quantity , D is demand per year, C cost per unit, F is fixed cost per order

Annual ordering cost = C0*D/2

The above variable details were not given in the question. You can use the formulas and calculate the required costs.

Thanks