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    Inventory Control Models

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    Demand for product is 100,000 per year, cost is $10 per order. Carryover cost per item year is 1/2 cent. Demand is constant, how much product should be ordered at a time to minimize the inventory costs?

    How many orders per year should be placed and what would the annual ordering cost be?
    What would the average inventory be and what would annual holding cost be?

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    Problem: Demand for product is 100,000 per year; cost is $10 per order. Carryover cost per item year is 1/2 cent. Demand is constant, how much product should be ordered at a time to minimize the inventory costs

    How many orders per year should be placed and what would the annual ordering cost ...

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    This solution is comprised of detailed step-by-step calculation of the given problem and provides students with a clear perspective of the underlying concepts.

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