Calculate the Annual Inventory Costs for the Following Data

question 25

Short Answer

Calculate the annual inventory costs for the following data.
$\begin{array}{ll} \text {Order quantity } & =400\text { units}\\ \text {Annual demand } & =12,500\text { units }\\ \text {Unit purchase cost } &=50\\ \text { Fixed cost of placing an order} &=75\\ \text { Percentage cost of holding one unit in inventory for a year } &=20\%\\\end{array}$

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Definitions:

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