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 inventory can run 30% or more of the value of the inventory per year. $10,000,000 of inventory can cost you $3,000,000 per year for the privilege of carrying it. This article does not attempt to tell you in detail how to reduce your inventory.