A retail store sells 500 jackets each month. Each jacket costs the store $99, and for holding cost purposes, the store estimates capital costs of 12%, storage costs of 10%, and risk costs of 3%. Furthermore, the store incurs annual operating expenses for purchasing in the amount of $1080 in addition to $10 for inspecting and receiving each order. If the store currently places a replenishment order of 650 jackets each time, what is the total annual holding and ordering cost? (Round your answer to the nearest integer)

1) The total annual holding cost is $144,788

2) The annual ordering cost is $1170

Step-by-step explanation:

The parameters given are;

The number of jackets sold per month = 500 jackets

The cost of each jacket = $99

The capital cost = 12%

The storage cost = 10%

The risk cost = 3%

Annual purchasing expenses = $1080

Cost for inspecting and receiving each order = $10

Number of jackets contained in each order = 650 jackets

1) Therefore, we have;

Number of jackets sold per annum = 500 × 12 = 6,000

Number of times jackets are ordered per year = (Number of jackets sold per annum)/(Number of jackets sold per annum)

Number of times jackets are ordered per year = 6000/650 = 9.23≈9 orders

Total cost of order = 9 × 650 × 99 = $579,150

Given that the total annual holding cost = (12 + 10 + 3)% of ordering cost

Therefore, the total annual holding cost = 25% of ordering cost

the total annual holding cost = 0.25 × 579,150

The total annual holding cost = $144,787.5 ≈ $144,788

2) The annual purchasing operating expense = $1080

The total cost of inspecting the 9 orders = 9 × $10 = $90

The annual ordering cost = $1080 + $90 = $1170

a

step-by-step explanation:

when a number is between two straight lines it means the absolute value.

to find absolute value you need to know how many numbers is that number away from 0.

when finding absolute value the number will always come out positive

so absolute value of -3 is 3

absolute value of 3/2 is 3/2

absolute value of -2 is 2

absolute value of 3.5 is 3.5

absolute value of -1 is 1

now put these numbers in order:

a)   |-1|, |3/2|, |-2|, |-3|, |3.5|

b and c

step-by-step explanation: