Could anyone help me change it into same units/ values? I need to have them all in "years"
Demand(D): Every month there is 5000 food: Therefore,
$D= 5000 * 12 = 60000$ food per year
Production(P): The foods can be produced up to 90000 per year: Therefore,
$P = 90000$ food per year
Holding cost(H): The foods are stored in bundles of 500, and each bundle has a holding cost of 30 dollars per month: Therefore, what I need is the holding cost for "1 food per year".
e.g. ??? dollars per food per year
I have tried something like this:
30/500 = 0.06 dollars per food per month. So if I do
0.06 * 12 = 0.74 dollars per food per year. (is this how I should write it?)
I dont understand the "bundle part". How can I convert it?
Any helps much appreciated!