An Assistant Manager Is Reviewing the Costs Associated with the Store's

Essay

An assistant manager is reviewing the costs associated with the store's best-selling product.The data available follows:
Demand = 2000 units/year
Order cost = $80/order
Holding cost = $10/unit/year
a.The current order quantity is 125 units per order.What is the total annual ordering cost and holding cost for this order size?
b.What would be the EOQ and its associated ordering and holding cost?