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.
Annual holding cost = average inventory level x holding cost per unit per year. = order quantity/2 x holding cost per unit per year. 2. Setup or ordering costs: cost involved in placing an order or setting up the equipment to make the product. Annual ordering cost = no. of orders placed in a year x cost per order.