Mathematics · Inventory Management
A manufacturing company uses 28,000 components at an even rate during the year. Each order placed is for 1,500 components, which is the economic order quantity (EOQ). The company holds a buffer inventory of 700 components. The annual cost of holding one component in inventory is $3. What is the total annual cost of holding inventory of the component?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$4,350✓
- 2$2,250
- 3$3,000
- 4$4,500
Correct answer
$4,350
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