A manufacturing company uses 25,000 components at an even rate during a year. Each order placed with the supplier of the components is for 2,000 components, which is the economic order quantity. The company holds a buffer inventory of 500 components. The annual cost of holding one component in inventory is $2.What is the total annual cost of holding inventory of the component?
A、$2,000
B、$2,500
C、$3,000
D、$4,000
A、$2,000
B、$2,500
C、$3,000
D、$4,000
【参考答案及解析】
Annual holding cost = {[Buffer inventory + (EOQ /2)] x Annual holding cost per component} ={[500 + (2000 +2)] x 2} = 3,000
Annual holding cost = {[Buffer inventory + (EOQ /2)] x Annual holding cost per component} ={[500 + (2000 +2)] x 2} = 3,000