A company incurs an ordering cost of $40 each time it places an order, regardless of the order size. The item's cost is $45, and the annual carrying charge for the item is 10%. If annual demand for this item is 10,850 and the company's order quantity (Q) is 439, calculate its total annualized cost of inventory. The total annualized inventory costs are (Enter your response as a whole number.)

A company incurs an ordering cost of $40 each time it places an order, regardless of the order size. The item's cost is $45, and the annual carrying charge for the item is 10%. If annual demand for this item is 10,850 and the company's order quantity (Q) is 439, calculate its total annualized cost of inventory. The total annualized inventory costs are (Enter your response as a whole number.)

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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