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.
Inventory Carrying Cost Example. Inventory carrying cost is the cost of owning inventory and is generally expressed in percentage terms. For example, if a company has an inventory carrying cost of 10% and the average annual value of inventory is $1 million, the annual cost of inventory is $100,000. Inventory cost is generally between 20% and 30% of the cost to purchase inventory, but the average rate varies based on the industry and size of business.