ABC company has a demand for 2000 units each year. The cost of each unit is $100. It costs ABC $200 to place an order and
$4 to carry a unit in the stock per year. Further, the supplier needs a week and a half to deliver the order. Assume 50 weeks to a year.
Calculate the Total Annual cost of the system.
D=2000 cases
Co=$200 per order
Ch=$4 /case/year
Q=?
R=?
L=1.5 weeks
P=$100/case
T=?
Ts=?
.