I need help only on question 1: i am confused as to what formula to use either option 1 or option 2
d: Demand usually units per year
s: Ordering cost per order
q:order quantity in units
h: Annual carrying cost per unit per year
option 1: TC= Carrying cost+ ordering Cost
Option 2: TC: Carrying cost +order cost+ purchase cost
(Q/2)h+ (d/Q)S+ PD
also for the second company do we use option 2 and for thefirst company we use option 1?
also on the third company how do i do it with the 200 safety stock
if you can answer question 1 please because i did it i just wanted to see if it was done correctly, THANKS!!!! would help a lot!!!