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Vesnalui [34]
3 years ago
15

For the next ten questions, use the following information: Stlyez Corp. has a monthly demand of 2,000 units for a product. The p

roduct is used at a constant rate over the 365 days. The annual holding cost for the product is estimated to be $4.00 per unit and the cost of placing each order is $150.00. Current order quantity (lot size) is 1000 units. What is the annual holding cost for Stlyez Corp. for their current lot size of 1000 units?
Business
1 answer:
viva [34]3 years ago
7 0

Answer:

$ 2,000

Explanation:

ANNUAL HOLDING COST = (Q / 2) * HOLDING COST

ANNUAL HOLDING COST = (1000 / 2) * 4 = 2000

Hence, the correct amount for the holding cost is $ 2,000

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