Business, 02.07.2020 01:01 zahriamarie10

Use the below information for all of the questions on this quiz. A wholesale company is reviewing its inventory costs for a high volume item which has an annual demand of 72,000 units, with a per unit purchase price of $10. The ordering cost is estimated at $25, and the annual inventory carrying cost for the warehouse is computed at 30% of the price while the in-transit shipping factor is 13%. The in-transit shipping time is 14 days. Forecasted average demand is 200 units per day, with a standard deviation of the forecast error of 20 units per day. The average order lead time is 16 days with a standard deviation of order lead time of 3 days. A 98% customer service level is to be maintained. There are 360 days in a year. What is the annual carrying cost for this product

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Use the below information for all of the questions on this quiz. A wholesale company is reviewing it...

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