What Is the Total Annual Inventory Cost (Using Basic EPQ

question 66

Short Answer

What is the total annual inventory cost (using basic EPQ )of a product whose annual demand is 15,000 units, daily demand is 40, daily production is 60, order cost is $80, and holding cost is $6? (Round to the nearest dollar.)

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Definitions:

Licensing Arrangement

A legal agreement allowing one party to use another's property, such as intellectual property, under certain conditions.

Foreign Legislation

Laws or regulations that are enacted by a governing body outside of one's own country.

Common Market

A customs union which further allows barrier-free movement of services, workers and finance among member territories.

Opinion Leadership

The ability of an individual to influence the opinions or behaviors of others within a community or group, often due to expertise or social status.