Bandeja paisa, (Paisa refers to a person from the Paisa Region and bandeja is Spanish for platter) with variations known as bandeja de arriero, bandeja montaÃ±era, or bandeja antioqueÃ±a, is a typical meal popular in Colombian cuisine, especially of the Antioquia department and the Paisa Region, as well as with the Colombian Coffee-Growers Axis, ( ...
For example, if a companyâs average inventory is $25,000 and the average inventory carrying cost is 20 percent, it will cost the company $5,000 per year to carry an average inventory of $25,000. An inventory holding cost that is 20 percent of the average value of inventory is probably too low.
Annual demand is 20,000 units so the company will have to place 16 orders (= annual demand of 20,000 divided by order size of 1,265). Total ordering cost is hence $64,000 ($400 multiplied by 16). Average inventory held is 632.5 ((0+1,265)/2) which means total carrying costs of $6,325 (i.e. 632.5 Ã $10).he company has a demand for 20,000 units per year. Calculate the order size, total orders required during a year, total carrying cost and total ordering cost for the year.