CA sells 600 bottles of vitamins per week at $ 100 per bottle. CA's supplier charges CA $ 30 per order and $ 50 per bottle.  CA's annual holding cost percentage is 40 % of unit cost. CA operates 50 weeks in a year. What is CA's total annual ordering and holding cost if CA  orders 500 bottles at a time ?

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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CA sells 600 bottles of vitamins per week at $ 100 per bottle. CA's supplier charges CA $ 30 per order and $ 50 per bottle.  CA's annual holding cost percentage is 40 % of unit cost. CA operates 50 weeks in a year. What is CA's total annual ordering and holding cost if CA  orders 500 bottles at a time ?  Show all formulas used, calculations and results.
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