Cy-sports store has an annual demand for 2400 snowmobiles, Operation Management

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Cy-sports store has an annual demand for 2400 snowmobiles

Cy-Sports Store has an annual demand for 2400 snowmobiles. The cost of purchase for each snowmobile is $2000. The ordering cost is estimated to be $250 and holding cost rate is 40% of unit cost.

a) What is the optimal order quantity (EOQ) for snowmobiles?

b) The annual holding cost?

c) The annual ordering cost?

d) Total annual inventory cost (TAIC)?

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Operation Management: Cy-sports store has an annual demand for 2400 snowmobiles

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Operation Management: Cy-sports store has an annual demand for 2400 snowmobiles

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