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)?