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.)

---

Definitions:

Simultaneously Collected

Pertains to data or information gathered at the same time across multiple variables or groups, allowing for synchronized analysis.

Qualitative

Refers to research or data collection methods that focus on understanding phenomena through observation in natural settings and analyzing non-numerical data.

Quantitative

Relating to, measuring, or measured by the quantity of something rather than its quality.

Epistemological

Pertaining to the theory of knowledge, including the methods, validity, and scope of understanding.