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.
Carrying cost or holding cost is the cost associated with keeping inventory on hand (storage, interest, insurance, taxes, and so on). Let's use $100. Calculate the numerator: 2 Annual Usage in units (100 units) Order Cost ($500) = $100,000. Divide the numerator ($100,000) by the Annual Carrying Cost per Unit ($100).This equals 1,000 units.Take the square root of 1,000 units. A simple way to find the square root is to raise a number to the 1/2 power.ivide the numerator ($100,000) by the Annual Carrying Cost per Unit ($100). This equals 1,000 units. Take the square root of 1,000 units. A simple way to find the square root is to raise a number to the 1/2 power.