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.
Over 65% of most companies do not compute inventory carrying costs, they use rough estimates ! Leading logistics experts place the cost of carrying inventory between 18% per year and 75% per year depending on the type of products and business !nventory Reduction Report, December 1994 ! CLM Conference attendees identified the management of inventory as the top priority in the next several years. The conference referred to Logistics, as inventory in motion.! Inventory is money and many companies assess an inventory carrying cost of 2% per month.