Andre candess manages an office supply store. one product in the store is computer paper. andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. there are 250 working days per year and the lead-time is 3 days. the cost of placing an order is $30, while the holding cost is $15 per box per year. if andre orders 500 boxes each time he orders from his supplier, what would his total annual inventory cost be (holding cost plus ordering cost) ?

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Ronald Nichols

1 July, 06:58

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Izayah Pineda · Answer 1

If Andre orders 500 boxes at a time his anual inventory cost with holding cost included should be $150,030.