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svp [43]
3 years ago
7

. For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual in

ventory (carrying and setup) cost is $600. What is the inventory carrying cost per unit per year for this item? A. $2.00 B. $3.00 C. $4.00 D. $6.00 E. $8.00
Business
1 answer:
Zielflug [23.3K]3 years ago
4 0

Answer:

Inventory cost will be $3

So option (b) is correct option

Explanation:

We have given that carrying and setup cost is $600

So carrying and setup cost = $600

And EOQ = 200 units

We have to find the inventory carrying cost per year

We know that inventory carrying cost is given by

inventory carrying cost =\frac{carrying\ and\ setup\ cost}{EOQ}=\frac{600}{200}=$3

So option (b) will be correct option

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