William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D 20,000 units/year Ordering cost S Holding cost H $27/order $3/unit/year a) The EOQ for the workbooks is 600 (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $ (round your response to the nearest whole number).

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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William Beville's computer training school, in Richmond, stocks
workbooks with the following characteristics:
Demand D
Ordering cost S
Holding cost H
20,000 units/year
$27/order
$3/unit/year
a) The EOQ for the workbooks is 600 (round your response to the
nearest whole number).
b) What are the annual holding costs for the workbooks? $
your response to the nearest whole number).
(round
Transcribed Image Text:William Beville's computer training school, in Richmond, stocks workbooks with the following characteristics: Demand D Ordering cost S Holding cost H 20,000 units/year $27/order $3/unit/year a) The EOQ for the workbooks is 600 (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? $ your response to the nearest whole number). (round
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