- This topic has 1 reply, 2 voices, and was last updated 7 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
The question:
“Monthly demand for a product is 10,000 units. The purchase price is
$10/unit and the company’s cost of finance is 15% pa. Warehouse storage costs per unit pa are $2/unit. The supplier charges $200 per order for delivery.”The holding cost is $3.50 ($10x 15% +2),the $1.50 is it the interest forgone?opportunity cost by holding one unit?Thank you.
Viewing 2 posts - 1 through 2 (of 2 total)
- The topic ‘EOQ’ is closed to new replies.