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Business, 02.04.2021 03:50 LeilaniCo

Items purchased from a vendor cost $250 each, and the forecast for next year’s demand is 2,000 units. The optimal order size is 100. The firm operates 52 weeks next year and lead time is 3 weeks. It costs $5 every time an order is placed for more units, and the storage cost is $4 per unit per year. What is the total storage (holding) cost for a year?

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Items purchased from a vendor cost $250 each, and the forecast for next year’s demand is 2,000 units...
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