Business: For a certain item, the cost-minimizing order quantity obtained with the basic eoq model is 200 units, and the total annual inventory (carrying and setup) cost is $600. what is the inventory carrying cost per unit per year for this item? a. $2.00 b. $3.00 c. $4.00 d. $6.00 e. $8.00

For a certain item, the cost-minimizing order

genyjoannerubiera

08.01.2022

Inventory cost will be $3

So option (b) is correct option

Explanation:

We have given that carrying and setup cost is $600

So carrying and setup cost = $600

And EOQ = 200 units

We have to find the inventory carrying cost per year

We know that inventory carrying cost is given by

inventory carrying cost $=\frac{carrying\ and\ setup\ cost}{EOQ}=\frac{600}{200}=$3$

So option (b) will be correct option

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