Comments

  1. Avatar of Javeria says

    i just dont understand the requirement of this question ?????????????????????///

    A company purchases 5,000 units per quarter at even rate throughout the year.
    Each order placed with the supplier incurs a delivery charge of $20.
    The annual cost of holding one unit in inventory is $5.

    What is the minimum total of the inventory costs (order costs plus holding costs) per year?

    $2,000
    $1,000
    $15,000
    $8,000

Leave a Reply