What is the annual carrying costs of post card inventory

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

Post Card Depot, an large retailer of post cards, orders 8,697,860 post cards per year from its manufacturer. Post Card Depot plans on ordering post card 15 times over the next year. Post Card Depot receives the same number of post cards each time it orders. The carrying cost is $0.11 per post card per year. The ordering cost is $483 per order.

 What is the annual carrying costs of post card inventory (round the answer to two decimal places)?

Oct 6th, 2015

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Annual Demand 8,697,860 Post card
Number of orders 15
Demand per order = 8,697,860/15 579,857
Carrying cost per year per unit held = $0.11 per post card
Annual carrying Cost = 579,857/2 x $0.26 $31,892.15
annual carrying costs of post card.xlsx

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Oct 6th, 2015

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Oct 6th, 2015

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