Demand, D = 5000 Order cost, S = $ 78.83 Holding cost, H = 12.3 12.3% * 2.84 = 0.34932 EOQ = SQRT(2 * 5000 * 78.83 / 0.34932) = 1502.221 ANNUAL HOLDING COST = (1502.221 / 2) * 0.34932 = 262.38
ANNUAL ORDERING COST = (5000 / 1502.221) * 78.83 = 262.38 TOTAL COST = AHC + AOC = 262.38 + 262.38 = 542.76 Thus the average annual cost of holding and setup for the meatballs is 542.76
A meatball is floor meat rolled into a ball, on occasion together with other elements, inclusive of bread crumbs, minced onion, eggs, butter, and seasoning. Meatballs are cooked by frying, baking, steaming, or braising in sauce. There are many styles of meatballs that use of exceptional kinds of meats and spices. The term is now and again extended to meatless variations based totally on greens or fish; the latter is also usually referred to as fish balls.
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