A company uses an item of inventory as follows. Purchase price $25 per unit Annual demand 1,800 units Ordering cost $32 Annual holding cost $4.50 per unit EOQ 160 units What is the minimum total cost assuming a discount of 2% applies to the purchase price and to holding costs on orders of 300 and over?
A、$45,720.00
B、$44,953.50
C、$45,000.00
D、$44,967.00
A、$45,720.00
B、$44,953.50
C、$45,000.00
D、$44,967.00
【参考答案及解析】
The company could order the EOQ amount of 160 or it could order 300 units and take a discount of 2%. We need to work out which is the cheapest option. Purchases (no discount) 1,800 x $25$ 45,000 Holding costs (W1) 360 Ordering costs (W2) 360 Total annual costs 45,720
The company could order the EOQ amount of 160 or it could order 300 units and take a discount of 2%. We need to work out which is the cheapest option. Purchases (no discount) 1,800 x $25$ 45,000 Holding costs (W1) 360 Ordering costs (W2) 360 Total annual costs 45,720