Information Given Annual Demand 18 150 Cost Per Unit 69 92 Inventory Carrying Co

Information given:

Annual demand 18,150

Cost per unit $69.92

Inventory carrying cost throughout the supply chain is 29.1%

Total transit time is 39 days

Transport costs = $,4079.61


Inventory Carrying Costs are based on the value of the product at the time it is held in inventory. What is the IN-TRANSIT CARRYING COST PER UNIT (in dollars and cents)

I may be overthinking this, but I already calculated inventory carrying cost for an EOQ equation as $20.35 per unit. It doesn’t seem right that this would be the same for in transit carrying cost. However, it says the carrying cost is 29.1% Throughout the supply chain… So I think it may be the same as the regular inventory carrying cost.

Leave a Reply

Your email address will not be published. Required fields are marked *