What is the total annual cost associated with the best order quantity?Group of answer choices7790.0000335.0000
Question
What is the total annual cost associated with the best order quantity?
Group of answer choices
- 7790.0000
- 335.0000
Solution
To determine the total annual cost associated with the best order quantity, we would typically need more information regarding the variables involved, such as demand, ordering costs, holding costs, and other relevant factors. However, since you provided choices, I will help you identify the correct answer based on the given information.
Here are the steps you can take if actual calculations are needed:
-
Break Down the Problem
- Identify the key variables needed to calculate the total annual cost.
- This typically includes:
- Demand ()
- Ordering cost per order ()
- Holding cost per unit per year ()
-
Relevant Concepts
- Use the Economic Order Quantity (EOQ) formula if applicable:
- Total annual cost (TC) can then be calculated as:
-
Analysis and Detail
- Substitute the values of , , and into the EOQ formula to find the best ordering quantity.
- Calculate the total annual costs using the EOQ found.
-
Verify and Summarize
- Double-check the calculations to ensure accuracy.
- Compare the total costs calculated with the provided answer choices (7790.0000, 335.0000).
Final Answer
Since specific variable values were not provided, I cannot calculate the total annual cost directly. However, review the process outlined and perform calculations with the necessary data to find the correct answer amongst the options given.
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