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    Fixed Order Quantity Inventory Model

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    A company is planning for its financing needs and uses the basic fixed-order quantity inventory model.

    What is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150?

    © BrainMass Inc. brainmass.com October 10, 2019, 5:44 am ad1c9bdddf
    https://brainmass.com/business/purchases-inventory-and-cogs/fixed-order-quantity-inventory-model-515934

    Solution Preview

    Please see the attached Excel file. Thanks

    Annual Demand 10000 units
    Cost per unit $150 ...

    Solution Summary

    Provides steps necessary to create a fixed order quantity inventory model.

    $2.19