Part of your business is selling modems for network connection. Demand for modems in your store is about 8,000 units per year. Ordering a shipment of modems costs about $500 in processing. A modem costs you $150 and holding a modem in inventory costs you 12% of its cost per year. Now assume that the supplier gives you the following discount schedule:0-499 $150500-999 $1491000-1999 $1482000-4999 $1475000 - $146What is the total annual inventory/ordering cost for this quantity?
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Home » Business » Part of your business is selling modems for network connection. Demand for modems in your store is about 8,000 units per year. Ordering a shipment of modems costs about $500 in processing.