Calculate the total costs of optimal inventory

Question

Problem 1: The High-Rise Building Company uses 400,000 tons of stone per year. The carrying costs are $100/ton. The cost per order is $500. Calculate the optimal number of orders per year.

• 400
• 100
• 200
• 300

Problem 2: The High-Rise Building Company uses 400,000 tons of stone per year. The carrying costs are $100/ton. The cost per order is $500. Calculate the total costs of optimal inventory.

• $200,000
• $150,000
• $100,000
• $50,000