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Business, 28.05.2021 14:00 biancatay

MeasurementBiz (MB) assembles high-end bathroom scales in central North Carolina. One particular component has daily demand of exactly 250 units per day. Whenever MB places an order for this component, there is a fixed cost of $10, regardless of the order quantity. The supplier ships the order quantity immediately, and it arrives exactly 2 days later. The component costs $25 per unit, at the time of shipment (MB owns the pipeline inventory from the supplier to its factory). MB has a cost of capital of 20% per year. Its physical inventory holding costs are negligible. MB operates 365 days per year. what is inventory holding cost?demand rate in units per year?

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