C&A sells 600 bottles of a dietary supplement per week at $100 per bottle. The supplement is ordered from a supplier who charges C&A $30 per order and $50 per bottle. C&A’s annual holding cost percentage is 40%. Assume C&A operates 50 weeks in a year. What is C&A’s total ordering and holding cost per year if C&A orders 500 bottles at a time? O S6800 O $11,800 O $10,036 O S5036
Expert Answer
Annual Requirement = Weekly Demand x Number of operational weeks
= 600 x 50 = 30,000 Bottles
Number of orders = Annual demand / Order Size
= 30,000
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