What is the annual ordering cost of the post card inventory?

Business & Finance
Tutor: None Selected Time limit: 1 Day

Post Card Depot, an large retailer of post cards, orders 5,402,240 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 17 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.06 per post card per year. The ordering cost is $436 per order.

What is the annual ordering cost of the post card inventory?

Oct 6th, 2015

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Carrying cost= $0.06 * $5,402,240 = $324,134

Ordering cost= 17 * $436 = $7,412

Total = $331,546

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Oct 6th, 2015

Thank you!

Oct 6th, 2015

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