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 total inventory cost for a year for a business is simply the sum of the carrying cost and the ordering cost. The total inventory cost formula is below, and the total inventory cost calculator can be found on this website.C=Carrying cost per unit of inventory. Q=Inventory order size (quantity).he cost of carrying inventory can be calculated by multiplying the cost of carrying a unit of inventory by the average number of units carried, usually for a year. If inventory is used at a steady pace, and restocked when empty, then the average number of units held would be the order size divided by 2.