Respuesta :
Answer:
The answer is $23640.
Step-by-step explanation:
The shop operates fifty-two weeks per year and weekly demand is 150 filters.
So, for 52 weeks the number of filters needed are = [tex]52\times150=7800[/tex]
Sam estimates that it costs $20 to place an order and his annual holding cost rate is $3 per oil filter.
He orders in quantities of 650 filters. Means for the year he will order [tex]7800/650=12[/tex] quantities
Total annual costs = ordering cost + holding cost
Ordering cost for 12 batches = [tex]20\times12=240[/tex] dollars
Annual holding cost = [tex]7800\times3=23400[/tex] dollars
Total cost will be = [tex]240+23400=23640[/tex] dollars
