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QUESTION 31 Given the following data: D 45,620 units per year, S - $120 per setup, P-$5 per unit, and He 4.92 per year, Quant
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Answer #1

Answer)

Annual Cost of Holding = (Holding Cost x Current Order Quantity) / 2

= (4.92 x 279) / 2

= $686.34

Therefore, annual cost of holding is $686.34

Annual Setup Cost = (Setup Cost x Annual Demand) / Current Order Quantity

= (120 x 45629) / 279

= $19625.376

Therefore, annual setup cost is $19625.38

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