To calculate the holding cost, we will time the annual unit holding cost with the order quantity and divide by 2. The reason to divide by 2 is because throughout the year, on average the warehouse is half full. Can you explain why throughout the year, the warehouse is half full?

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07-10-2022
Mathematics

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To calculate the holding cost, we will time the annual unit holding cost with the order quantity and divide by 2. The reason to divide by 2 is because throughout the year, on average the warehouse is half full. Can you explain why throughout the year, the warehouse is half full?

Sagot :

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