Item Annual Ordering Cost Holding Cost Unit Price 5 Holding Cost Demand 5 96 5 1

a)   Calculate the company’s maximum inventory investment throughout the year.

b)    Calculate the company’s average inventory level.

Item Annual Ordering Cost Holding Cost Unit Price (5} Holding costDemand (5} (96} (5} 101 500 10 20% 0.5 0.10102 1500 10 30% 0.2 0.06103 5000 25 30% 1 0.30104 250 15 25% 4.5 1.13105 1500 35 35% 1.2 0.42201 10000 25 15% 0.75 0.11202 1000 10 20% 1.35 0.27203 1500 20 25% 0.2 0.05204 500 40 25% 0.8 0.20205 100 10 15% 2.5 0.38

 

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