A company produces fertilizer to sell to wholesalers. One of the raw material, is purchased from a supplier located near the company's plant. 5, 750, 000 tons of raw material is the demand forecast to be required next year to support production. The raw material costs $22.50 per ton, the annual carrying cost is 40% of acquisition cost, and ordering cost is $595 per order. If the total annual carrying cost corresponding to the optimal number of order is approximately $124, 079, then the total annual inventory cost is equal to

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03-06-2024
Business

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A company produces fertilizer to sell to wholesalers. One of the raw material, is purchased from a supplier located near the company's plant. 5, 750, 000 tons of raw material is the demand forecast to be required next year to support production. The raw material costs $22.50 per ton, the annual carrying cost is 40% of acquisition cost, and ordering cost is $595 per order. If the total annual carrying cost corresponding to the optimal number of order is approximately $124, 079, then the total annual inventory cost is equal to

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