BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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average inventory x ordering cost per unit
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average cost x storage cost per unit
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storage cost + carrying cost
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number of times orderd x cost per order
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Detailed explanation-1: -Multiply the square foot number (length x width) by the highest point on your stack. This number is the cubic feet of storage required. If the warehouse charges by cubic foot, multiply this number by the charge per cubic foot. Divide the total size in square or cubic feet by the size or the storage bay or locker.
Detailed explanation-2: -The total cost of production is divided by the total amount paid in numbers, forming the average total cost formula. A straightforward and easy-to-use procedure, the total-cost formula is calculated by dividing the total production cost by the number of products manufactured.
Detailed explanation-3: -Economic Order Quantity The total cost of inventory is the sum of the purchase, ordering and holding costs. As a formula: TC = PC + OC + HC, where TC is the Total Cost; PC is Purchase Cost; OC is Ordering Cost; and HC is Holding Cost.