Packed with plump morsels of Washington state farm apples and our trademark spice blend, this juicy sausage is so tasty, it could almost be called addictive (in a healthy way, of course). Try it grilled with a Dijon, garlic and honey glaze.
Its cost per order is $400 and its carrying cost unit is $10 per unit per annum. The 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.
The cost of carrying or holding inventory is the sum of the following costs: Money tied up in inventory, such as the cost of capital or the opportunity cost of the money. Physical space occupied by the inventory including rent, depreciation, utility costs, insurance, taxes, etc. Cost of handling the items.