43%() Wed 1:59 PM ae E okmarks People Window Help one erder is SS: the cost of c

Question

43%() Wed 1:59 PM ae E okmarks People Window Help one erder is SS: the cost of carrying one unt in irventory for . yor is s2. Laird Company uses 405 unts of a part each year. The cost of pla Laird courrently orders 81 units at a time. A The annual ordering cost of Lairds current policy is of uairds ument poicyIs B. The annual carying cost of Lairds current policy is C. The total cost of Laird's current policy is D. What is the economic order quantity (EOQ) for Laird E. What is the total inventory-related cost at the EOq? acBoo 8 0. 5

Explanation / Answer

A) The annual ordering cost = $2025 (405 units × $5)

B) The annual carrying cost = $810 (405 units × $2)

C) The total cost = $2835 ($2025+$810)

D) Economic order quantity = 45 units (whole root of {2×405units×$5}/$2)

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