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

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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

Thank you for the opportunity to help you with your question!

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

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

Total = $331,546

Please let me know if you need any clarification. I'm always happy to answer your questions.
Oct 6th, 2015

Thank you!

Oct 6th, 2015

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