Question

Wear A Mask (WAM) uses a continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics:

Demand (D) = 20,600 units/year
Ordering cost (S): Could you please provide information about the ordering cost (S) for this SKU?

Answer 1

The ordering cost (S) for the SKU cannot be determined without additional information or assumptions about cost per order and order quantity.

Step-by-step explanation:

The ordering cost (S) for the SKU can be calculated using the formula S = (Co * D) / Q, where Co is the cost per order and Q is the order quantity. However, the ordering cost is not provided in the question. It is a value that varies depending on factors such as the cost of placing an order, shipping costs, and administrative costs.

To determine the ordering cost for this SKU, you would need additional information or assumptions about the cost per order and the order quantity. Without that information, it is not possible to provide a specific value for the ordering cost (S).