question archive The Edmonton Oilers Entertainment Group orders pucks that they sell to fans for $5 each
The Edmonton Oilers Entertainment Group orders pucks that they sell to fans for $5 each
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The Edmonton Oilers Entertainment Group orders pucks that they sell to fans for $5 each. Their inventory holding cost (H) is 21% of the selling price. The annual demand (D) is 512,414 pucks and they have to order (Q) 9,177 pucks at a time. Due to fluctuations in demand they keep 1,100 pucks on hand as safety stock. It costs $57 (S) for each order.
What is the annual inventory cost?
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