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.
Most companies tend to underestimate the total carrying costs (or total cost of holding inventory). For most retail and manufacturing businesses, expertsâ evaluations of the cost of carrying inventory range from 18% per year to 75% (or, according to Helen Richardson, see below References nÂ°3, between 25-55%).